Preferred Equity Alongside Freddie Mac Loans

NewPoint offers proprietary preferred equity alongside our Freddie Mac loans, providing clients a best-in-class capital solution through a single platform. Borrowers benefit from a streamlined experience, with origination and ongoing servicing managed seamlessly by NewPoint.

 

ELIGIBLE PROPERTIES

Conventional and affordable multifamily housing, seniors housing, student housing, manufactured housing communities, cooperative housing, and built-to-rent properties, subject to Freddie Mac policies.

ELIGIBLE BORROWERS

Borrowers must qualify for Freddie Mac senior loan.

FINANCING PURPOSE

Acquisition or refinance

PREFERRED EQUITY AMOUNT

Generally, $2M – $100M; however, larger investment amounts will be considered.

PREFERRED EQUITY TERM

Coterminous with a Freddie Mac senior loan.

RATE STRUCTURE

Fixed rate

AMORTIZATION

Interest-only

MINIMUM COMBINED DSCR

1.05x (preferred equity - interest-only; senior loan - amortizing)

MAXIMUM COMBINED LOAN-TO-VALUE

Up to 90%

PRICING

Competitive pricing; current pay and accrual available subject to NewPoint’s determination.

RATE LOCK

Can be combined with some Freddie Mac loan features such as the early rate lock option and index lock option. Eligibility subject to Freddie Mac approval.

TAX AND INSURANCE ESCROWS

Generally required

REPLACEMENT RESERVES

Generally required

THIRD-PARTY REPORTS

Standard third-party reports as required/processed under the senior loan.

FEES

Standard application and investment fees apply. NewPoint's outside counsel fee to be quoted for each transaction.

EARLY REPAYMENT

Allowed; minimum multiple negotiable

 

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.