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Fannie Mae

Healthy Housing Rewards (Healthy Design)

BENEFITS
  • Lower interest rate.
  • Reimbursement for Healthy Design Certification (up to $6,500).
  • Flexible underwriting to specific affordable developments.
  • Flexible loan terms and fixed- or variable-rate financing options.
  • Certainty and speed of execution.
ELIGIBILITY
  • Affordable Housing properties with at least 50% of the units affordable at 80% of Area Median Income or less.
  • Must obtain Healthy Design certification from an approved Fannie Mae provider.
  • One-time benefit per Borrower per property. Cannot be combined with Healthy Housing Rewards Enhanced Resident Services™.
TERM

5-30 years.

AMORTIZATION

Up to 35 years.

HEALTHY DESIGN CERTIFICATION

Certification fee cost (up to $6,500) reimbursed by Fannie Mae.

INTEREST RATE

Fixed- and variable-rate options available.

MAXIMUM LTV

Varies by product type.

MINIMUM DSCR

Varies by product type.

PREPAYMENT AVAILABILITY

Flexible prepayment options available, including yield maintenance and declining prepayment premium.

LOAN AMOUNT

No minimum or maximum.

RATE LOCK

30- to 180-day commitments. Borrowers may lock the interest rate using Streamlined Rate Lock option. Confirmation of Healthy Design certification is required prior to rate lock.

ACCRUAL

30/360 and Actual/360.

RECOURSE

Non-recourse execution is available, with standard carve-outs for “bad acts” such as fraud and bankruptcy required.

THIRD-PARTY REPORTS

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.

ASSUMPTION

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.