Fannie Mae Moderate Rehabilitation Loan Program

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Terms

Description
Non-recourse, assumable financing for the acquisition or refinance of any asset class with planned capital improvements in excess of $8,000 per unit for the entire property.

Rehabilitation Restriction
At least 60% of renovation budget should be allocated to interior unit improvements. Must be completed within 36 months of the Mortgage Loan Origination Date

Underwriting
The amount of rehab per unit is based on total number of residential units, rather than the number of units being rehabilitated

Loan Amount
Minimum $10,000,000

Loan Terms
5-30 years

Loan to Value Maximum
80%

Coverage Minimum
1.25x

Interest Rate
Risk-based pricing

Prepayment
Flexible

Completion Repair & Rehabilitation Reserve Agreement
If $20,000 per unit repairs or higher, a Rehabilitation Work Evaluation Report is required. A Completion Repair Guaranty that covers the entire scope of the rehabilitation work is required. Borrower must execute a Modifications to Multifamily Loan and Security Agreement and must: 1) identify on the Rehabilitation Work Schedule the planned scope of the Rehabilitation Work, including all of the Rehabilitation Work items, estimated costs, allowance for cost overruns, and completion dates; and 2) complete a budget for the planned Rehabilitation Work, and fund into the Rehabilitation Reserve Account: the entire budgeted amount of all Rehabilitation Work not identified as Completion/Repairs by the PCA.

Third Party Reports
MAI Appraisal, Physical Needs Assessment, and Environmental Phase I Assessment