NewPoint Impact provides financing for the new construction or acquisition/rehabilitation of affordable rental housing, while Fannie Mae writes an unfunded forward commitment to provide the permanent financing pursuant to its M.TEB program.
Nationwide rental projects financed in conjunction with 4% LIHTC.
Borrower may be for-profit or 501(c)(3).
MINIMUM INVESTMENT AMOUNT
Permanent sizing plus any amounts necessary to satisfy the 50% test. Ability to bridge LIHTC with credit-worthy counterparties.
NewPoint will act as Construction Lender and M.TEB purchaser, eliminating the necessity of a second construction lender.
Drawdown during construction.
CONSTRUCTION LOAN ADMINISTRATOR
- 1.15x DSCR; 90% LTV for properties with at least 90% of units meeting affordability requirements.
- 1.20x DSCR; 85% LTV for properties with less than 90% of units meeting affordability requirements.
- 1.20x DSCR; 80% LTV for refundings.
Fixed rate. Rate equals investor spread plus Fannie Mae servicing and guarantee fees. Interest only during construction.
- 1.15x for properties with at least 90% of units meeting affordability requirements.
- 1.20x for properties with less than 90% of units meeting affordability requirements and for refundings.
90% based on as-restricted and as-completed value.
Repayment, completion and stabilization guaranties apply during the construction phase. Fannie Mae M.TEB non-recourse carve-outs during the permanent phase.
- 1.15x DSCR (at least 90% of units meeting affordability requirements).
- 1.20x DSCR (less than 90% of units meeting affordability requirements and for refundings).
Yield maintenance subject to typical FNMA requirements.
Able to close 60 days after receipt of third parties.
Standard application and origination fees apply. NewPoint’s outside counsel fee to be quoted for each transaction.
This sheet is designed solely as an aid to prospective borrowers and other clients on programs offered by NewPoint. 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 sheet does not constitute an offer to sell, buy or the solicitation of an offer to buy any securities. This term sheet is subject to change at any time without notice at the sole discretion of NewPoint and its affiliates.