Unfunded Forward Commitment 9% LIHTC
Offers an unfunded forward commitment to issue an MBS upon completion of construction and conversion to a permanent mortgage loan for multifamily affordable properties.
- Protection from interest rate volatility by locking the interest rate and other key provisions prior to construction.
- Single asset security allows for customized loan structures.
- Certainty and speed of execution.
- LIHTC new construction and properties undergoing substantial rehabilitation, including preservation and rural transactions.
- Lenders approved to deliver forward commitments under Fannie Mae’s Multifamily Affordable Housing product line.
FORWARD RATE LOCK PERIOD
24- or 30-month commitments. One delegated six-month extension available.
LOAN TO VALUE
Up to 30 years.
Up to 35 years.
DEBT SERVICE COVERAGE RATIO
CONVERSION TO PERMANENT REQUIREMENTS
The permanent loan will close upon project completion with:
Certificates of occupancy for all units.
90% Occupancy for 90 days.
The permanent loan must meet Fannie Mae’s underwriting requirements.
GOOD FAITH DEPOSIT
1% of the loan amount, due at issuance of the Forward Commitment, refundable upon conversion.
+5% and -10% is available.
FORWARD STANDBY FEE
0.10% paid upfront prior to rate lock and 0.05% for the 6-month extension.
Second lien Delivery Assurance Note and Mortgage are necessary if required by Fannie Mae or the Bond Investor.
This sheet sets out the general guidelines of a loan program and is designed solely as an aid to prospective borrowers and other clients. It does not represent or imply a contract or a commitment to lend funds. A commitment to lend funds may only be made by a written letter issued by NewPoint to a prospective borrower. This term sheet is subject to change at any time without notice at the sole discretion of NewPoint Real Estate Capital LLC.