- Lower interest rate.
- Initial Sponsor certification paid by Fannie Mae.
- Reimbursement for Property Enhanced Resident Services certification.
- Flexible underwriting to specific affordable developments.
- Flexible loan terms, and fixed- or variable-rate financing options.
- Certainty and speed of execution.
- Affordable Housing properties with at least 50% of the units affordable at 80% of Area Median Income or less.
- Sponsors must obtain certification from an approved Fannie Mae provider.
- Borrowers must obtain property-level certification from an approved Fannie Mae provider.
- One-time benefit per borrower per property. Cannot be combined with Healthy Housing Rewards Healthy Design benefits.
Up to 30 basis points discount.
Up to 35 years.
SERVICE PROVIDER CERTIFICATION
Cost of initial Service Provider certification (up to $5,500) reimbursed by Fannie Mae. Service Provider must obtain recertification every 5 years.
PROPERTY LEVEL CERTIFICATION
Initial cost of property-level certification (up to $750) reimbursed by Fannie Mae. Borrower must obtain yearly property recertification.
Fixed- and variable-rate options available.
Varies by product type.
Varies by product type.
Flexible prepayment options available, including yield maintenance and declining prepayment premium.
No minimum or maximum.
30- to 180-day commitments. Borrowers may lock the interest rate using Streamlined Rate Lock option. Confirmation of Sponsor-level and property-level certifications is required prior to rate lock.
30/360 and Actual/360.
Non-recourse execution is available, with required standard carve-outs for “bad acts” such as fraud and bankruptcy, as well as failure to maintain Sponsor/property level certifications or Sponsor control requirements.
Standard third-party reports, including Appraisal, Phase I Environmental Assessment, and a Property Condition Assessment, are required. Confirmation of Healthy Housing Rewards features and eligibility is required.
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
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.