Streamlined underwriting for long-term fixed rate financing for the acquisition or refinance of stabilized multifamily rental properties with rent and income restrictions, and/or Section 8 HAP Contracts.
$1,000,000 - $5,000,000 in Baltimore, Boston, Chicago, Los Angeles, New York, Philadelphia, Portland, Sacramento, San Diego, San Francisco, San Jose, Seattle and Washington DC. $1,000,000 - $3,000,000 in all other markets.
An MAH Property must have rent and income restrictions that meet or exceed
One of the following requirements.
- At least 20% of all units have rent or income restrictions to households earning no more than 50% of Area Median Income (“AMI”)
- At least 40% of all units have rent or income restrictions in place to households earning no more than 60% of AMI
- At least 20% of all units are subject to a project-based Section 8 HAP contract
7 to 30 years
Yield maintenance formula with a 1% minimum (Declining Percentage Fee schedule is available upon request)
Non-recourse; subject to Lender’s discretion
Debt Service Coverage
1.20x minimum DSCR
Loan to Value
Supplemental mortgages are available after the first 12 months of the loan term or with a loan assumption
Non-recourse loans are assumable with the Lender’s consent and a 1% fee
Net Worth and Liquidity
Net worth equal to the loan amount and liquidity equal to 6 months P&I required
Typically, lock occurs after commitment is issued
Due Diligence Fee: $15,000 non-refundable fee for legal, 3rd party reports and processing;
Rate Lock Deposit:
Good Faith Deposit of 1% due upon acceptance of commitment and is refundable upon closing
45-60 days from complete application to commitment