Loan Amount:
$1,000,000 minimum; $15,000,000 maximum. Larger loans permitted on a case by case basis. |
Credit Enhancement:
Fannie Mae Mortgage Backed Security ("MBS") to provide AAA rated credit enhancement. Can enhance a taxable tail as well as the tax-exempt issue. |
Credit Enhancement Fees:
Based on Fannie Mae Tiered Pricing structure. Credit enhancement fees are lower for loans with a lower loan to value and higher debt service coverage. |
Loan Term:
For tax credit properties, 18 - 30 year term. For non-tax credit properties, a 10 year balloon maturity is available. |
| Amortization: Up to 30 years. |
Prepayment:
Pursuant to the bond documents. Yield maintenance formula required on the Fannie Mae guaranty and servicing fees. |
Recourse:
Non-recourse, except for standard lender carveouts (waived for 100% LIHTC properties). |
Borrower:
All properties must be owned by a single asset or single purpose entity. |
Debt Service Coverage:
Minimum 115%. For non-tax credit properties, 125% minimum. |
Loan to Value:
For 100% tax credit properties, 90% maximum. For all other properties, 85% maximum. |
Subordinate Financing:
Soft secondary financing allowed up to 100% of appraised value but must be serviced by no more than 75% of the available cash flow. |
Taxable Financing:
Cash-out refinancing to cover transaction costs and other uses available in some cases through issuance of taxable bonds. |
Occupancy:
Properties must be 90% physically occupied for the 90 day period prior to loan funding. |
Assumability:
Yes, subject to NYCL approval and the payment of a processing fee and a 1% assumption fee. |
Reserves:
Tax and insurance escrows are required. Replacement reserves and repairs required as determined by the engineer's report. |
Application Fee:
$15,000. Covers the cost of all third party reports, travel expenses and other out-of-pocket expenses. |
Financing Fees:
Typically 1% to 1.5%. |
Timing:
Commitments issued in 60 days or less. |
Pricing:
Contact your NYCL representative for a price quote. |
