Conventional Fixed Rate
ELIGIBLE BORROWERS
- Borrower may be a limited partnership, corporation, limited liability company, or a tenancy in common (TIC).
- General partnerships, limited liability partnerships, REITs and certain trusts may also be acceptable in limited circumstances, subject to additional requirements.
- Borrower must usually be a Single Purpose Entity (SPE) (see Section 6.13 of the Loan Agreement for basic SPE requirements); however, on loans less than $5 million, upon borrower’s request, a borrower other than a TIC may be a Single Asset Entity instead of a SPE.
- If the borrower is structured as a TIC, each tenant in common must be an SPE.
ELIGIBLE PROPERTIES
Standard Multifamily Housing, Student Housing, Seniors Housing, Manufactured Housing Communities, Cooperative Housing and Targeted Affordable Housing Cash (e.g., LIHTC Year 4-10 and 11-15, Section 8) Loans. Loans may be used for acquisition or refinance.
TERMS
5- to 10-year terms (up to 30 years if loan is not purchased for securitization).
AMOUNT
Generally, $5 million to $100 million (larger and smaller loans will be considered).
MAXIMUM AMORTIZATION
30 years.
AMORTIZATION CALCULATIONS
Actual/360 standard; 30/360 available.
LOCK-OUT PERIOD
2 years following securitization.
PREPAYMENT PROVISIONS
Yield maintenance until securitized followed by 2-year lock out. Defeasance thereafter. No prepayment premium for final 90 days. If loan is not securitized within first year, then yield maintenance applies until the final 90 days. Yield maintenance without defeasance is available for securitized loans at an additional cost.
TAX AND INSURANCE ESCROW
Generally required.
REPLACEMENT RESERVE DEPOSIT
Generally required.
RECOURSE REQUIREMENTS
Non-recourse except for standard carve-out provisions.
SUPPLEMENTAL LOAN AVAILABILITY
Yes, subject to requirements specified in the Loan Agreement.
APPLICATION FEE
Greater of $2,000 or 0.1% of loan amount for conventional first mortgages. Seniors Housing loans are > $5,000 or 0.15% of loan amount. Supplemental loans are > $5,000 or 0.1% of loan amount and Targeted Affordable Housing loans are > $3,000 or 0.1% of loan amount.
LOCK OPTIONS
Early rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase. Index Lock option is also available.
REFINANCE TEST
No Refinance Test is necessary if the loan has an amortizing debt coverage ratio (DCR) of 1.40x or greater and a Loan-to-Value (LTV) ratio of 60% or less.
LOAN-TO-VALUE RATIOS AND AMORTIZING DEBT COVERAGE RATIOS
- ≥ 5-Year & < 7-Year Term
- Amortizing – 75% / 1.25%
- Partial-Term IO – 75% / 1.25%
- Full-Term IO – 65% / 1.35%
- ≥7-Year Term
- Amortizing – 80% / 1.25%
- Partial-Term IO – 80% / 1.25%
- Full-Term IO – 70% / 1.35%
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.