Non-recourse, supplemental financing available on existing, fixed or floating, stabilized DUS Conventional properties, Multifamily Affordable Housing Properties, Seniors Housing Properties, Student Housing Properties, and Manufactured Housing Communities loans serviced by Greystone as a property’s value and income stream increase. Bond Credit Enhancement transactions are eligible with prior approval of Fannie Mae. Fannie Mae must be the only debt holder on the property.
Minimum $1 million
Supplemental loans can be coterminous or non-coterminous; 5-30 years
Supplemental Loans are available 12 months after the closing of the senior Fannie Mae Mortgage Loan
Up to 30 years
Loan to Value Maximum
As high as 75%, depending upon asset class and use of proceeds.
As low as 1.30x, depending upon asset class and use of proceeds.
Fixed and variable rates
Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and graduated prepayment for variable-rate loans
30- to 180-day commitments. Borrower may lock the rate with Streamlined Rate Lock option
Supplemental Loans can be either coterminous with the underlying senior loan, or non-coterminous.
Non-recourse execution with standard carve-outs required for “bad acts” such as fraud and bankruptcy
Third Party Reports
Standard third-party reports, include MAI Appraisal, Phase I Environmental Assessment, Property Condition Physical Needs Assessment, may not be required, if certain conditions are met; Seismic Report update may be required for properties in Seismic Zones 3 and 4
Replacement reserve, tax and insurance escrows are typically required, based on the resulting Tier of the combined Pre-Existing Mortgage Loan and Supplemental Mortgage Loan
Approximately $15,000; covers 3rd party reports and underwriting costs
$8,000 to $12,000; varies based on the characteristics of the deal
45-60 days from application to commitment; dependent on 3rd party report timing and borrower’s submission of due diligence
Typically, rate lock occurs after the commitment is issued; Streamlined Rate Lock option is available
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience