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multifamily & mixed use financing

Multifamily & Mixed Use Construction & Substantial Rehab Loans
Rate: 7.75%+ Term: 42 years, 2 years interest only, construction loan PLUS 40 year fully amortizing permanent loan. LTC: 80% - 90% 90% LTC with 1.11X DSCR (Subsidized Housing) 87% LTC with 1.15X DSCR (Affordable Housing 85% LTC with 1.18X DSCR (Market Rate) 80% LTC with 1.25X DSCR (Subsidized & Affordable) Loan Amount: $10 million + Lending Area: USA Program: FHA-HUD 221 (d)(4) Property Type: Apartments, Mixed-Use, Affordable Subsidized housing and non-dedicated student housing (up to 25% of net rentable area and 15% of gross income may be commercial) Fees: Our fee is built into the interest rate Finance new building construction and major renovation of existing buildings where: a) Renovation $15,000 + per unit times local cost factor (typically 190% to 270%) b) Renovation 50%+ over 2 building systems (electrical, plumbing, mechanical, building envelope & structural) Upfront Fees: NO upfront fees underwriting pricing and sizing loans NO application or 3rd party fees (such as appraisals) until borrower signs FHA-HUD, Fannie Mae or Freddie Mac term sheet Rate Locks: 2 months before funding; can rate lock early by paying a one time, nonrefundable payment of 3 to 6 BPS per month (borrower chooses # of months to rate lock) Non-Recourse: Non-Recourse Prepayment: Negotiable Assumable: YES Credit: 620+ Borrower: Must have experience in the last 3 years on title building or major rehabbing similar projects(s) Borrower Liquidity: Must cover "cash to close" (combined for all key principals) Contractor: May hire HUD approved general contractor to build project but there must be someone on title and organization chart with multifamily experience with similar sized project(s) Title: Must close in a single asset, special purpose LLC, corporation or partnership Student Housing: 1) Must accept student and non-student tenants 2) 12 month leases 3) Leased per unit not per bed and 4) rental rates must be comparable to non-student apartments in the area.
Escrows
1) Before construction, reserves for interest, taxes, insurance, working capital (2 to 4% of loan amount) and initial operating deficit; balances released to borrower after 6 consecutive months of break-even operations 2) Post construction: taxes, insurance & monthly mortgage insurance premium and capital needs reserve with monthly deposits by HUD guidelines
HUD Guidelines
Mortgage insurance premium: 0.65% (0.70% for urban renewal projects) 0.25% to 0.35% for affordable & subsidized properties 0.25% for Energy Star certified properties; amounts due during construction term paid at closing). HUD Application Fee: 0.15% of loan amount due with initial application; plus 0.15% with final application (entire 0.30% due with final application for affordable and subsidized properties). Applicaton fees are lower for properties in opportunity zones. Third Party Reports: Appraisal, market study, environmental & future capital needs assessment plus review of final construction and architectural docs by HUD approved 3rd party contractor. Timeline: 12 months from due diligence to closing

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