Refinance or acquisition of existing Multifamily Housing properties.
Existing Multifamily (minimum 5 units) and Mixed-Use properties.
Eligible for up to 25% of net rentable area and 20% of EGI.
Single asset, special purpose entity. Either for-profit or nonprofit.
MAXIMUM LOAN AMOUNT
The lesser of:
- for Market Rate properties, applicable factors: 85% LTV, 1.176 DSCR;
- for Affordable properties, applicable factors: 87% LTV, 1.15 DSCR;
- for properties with 90% or greater rental assistance, applicable factors: 90% LTV, 1.11 DSCR; and
- greater of 100% of transaction costs or 80% LTV if refinance cash out transaction.
* 50% of cash out funded at closing; remainder upon completion of non-critical repairs. Other parameters apply to mortgage over $75 million.
** Other than the above constraints, there are no minimum or maximum loan sizes.
TERM & AMORTIZATION
A maximum term of the lesser of 35 years fully amortizing or 75% of remaining economic life.
Fixed-rate, subject to market conditions at the time of rate lock.
MORTGAGE INSURANCE PREMIUM
1.0% payable at closing, 0.60% annually thereafter;
0.25%-0.35% for Affordable and subsidized properties; and
.25% for NGBS (Green) certified properties.
Fully assumable, subject to HUD approval.
Negotiable. Best rates typically have a 1–2-year lockout with a declining prepayment penalty for the remainder of the first 10 years.
THIRD PARTY REPORTS
Appraisal, PCNA, Phase I ESA and Radon. Other reports as needed.
ESCROWS Escrows for taxes, insurance and mortgage insurance premium are required.
Initial and monthly deposits required based on long-term physical needs of property.
HUD APPLICATION FEE
$3 per $1,000 of requested loan amount.
HUD INSPECTION FEE
Greater of 1.0% of the cost of repairs or $30 per unit ($1,500 max if repairs are less than $100K).
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.