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TAX
EXEMPT BOND CREDIT ENHANCEMENT
A FNMA credit enhancement for fixed or variable rate tax-exempt bonds
to finance acquisitions, new construction properties (in conjunction
with a forward commitment), moderate or substantial rehabilitation and
refinancing or existing debt. Eligible properties will qualify as
affordable housing.
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| Transactions may be structured as new money
issues, refunding issues, or credit substitutions where FNMA takes
place of an existing credit enhancer without the issuance of new
bonds.
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 | MINIMUM LOAN:
$2,000,000.00 |
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| LOAN TERM:
10 to 30 Years. |
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| AMORTIZATION: Up to 30
Years. |
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| MINIMUM DSCR:
1.20x to 1.25x for fixed and variable rate. |
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| MAXIMUM LTV:
80% (tax exempt value) - 85%-90% (conventional
value). |
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| INTEREST RATE:
Variable Rate - Priced off Bond Market Association
Municipal Swap Index (BMA). Interest rate cap required. |
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| ELIGIBLE PROPERTY TYPES:
Multifamily - minimum five units. |
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| ELIGIBLE BORROWER:
Single Asset Entity. |
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| OCCUPANCY REQUIREMENT:
90% Physical Occupancy for 60 days at application
90 days at commitment. |
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| TAX AND INSURANCE ESCROWS:
Monthly Deposits Required. May be waived if certain criteria are met. |
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| REPLACEMENT RESERVES:
Underwritten at a minimum of $150 per unit per
annum - Monthly deposits may be waived if certain criteria are
met. |
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| RECOURSE: In Most Cases Non-Recourse With Standard
Exceptions For Fraud and Misrepresentation. |
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| COMMERCIAL SPACE:
Maximum 20% of net rentable area and maximum 20% of
effective gross income. |
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| REQUIRED REPORTS:
MAI
Appraisal, Property Condition Assessment, Phase I. Others if applicable. |
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| ASSUMABLE: Subject to Approval and
Fee. |
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| SUBORDINATE FINANCING:
Allowed subject to approval. |
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| PRICING:
Tiered Pricing Matrix. More favorable terms available
for higher DSC and lower LTV. |
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| CLOSING COSTS:
Deposit required for third party reports, processing
costs, title and legal.
Travel and other standard costs if an when applicable. |
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| ORIGINATION FEE: Minimum
2.50%. (In Addition to Closing Costs). |
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| GOOD FAITH
DEPOSIT: Case by Case Basis. Applied to Origination Fee post closing, less
legal and related costs. |
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| Above terms and conditions are subject to
change at any time without prior notice. Other terms and conditions apply.
If you have any questions, please don't hesitate to
contact us. Thank you. |
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| TO APPLY ONLINE
- CLICK
HERE | BACK TO CONDUIT HOME
PAGE - CLICK HERE |
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