Affordable Housing Financing And Bridge Loans
AFFORDABLE HOUSING FINANCING
Affordable Housing program provides
long-term, permanent, new construction and substantial rehabilitation
loans that support both non-profit and for-profit owners and
developers with balance sheet option and partnerships with other
lenders, including approved Multifamily Accelerated Processing (MAP)
and Lean HUD Mortgage Lenders, Ginnie Mae Securities Issuer and
Servicer and approved HUD lenders under the HUD Low Income Housing Tax
Credit (LIHTC) pilot program along with all programs under the 232
Lean Loan process for healthcare facilities.
BRIDGE LOANS
Bridge financing for affordable housing properties is available to qualified sponsors under a senior debt facility for their cash-flowing properties, or value-add properties that our borrower will be able to transform into a cash-flowing property that can later be sold or refinanced by a bank.
LOAN AMOUNTS: $5,000,000 to $50,000,000 (Loans outside this range are welcome by a strategic partner)
LOAN TERM: While the most typical loan term is one year, loans have been originated with terms ranging from six months to five years
MINIMUM DSCR: Case by Case
LOAN TO VALUE: Typically up to 75% loan to value on first mortgages - to be determined on a case-by-case basis
MEZZANINE/SECOND MORTGAGES: Mezzanine and second mortgage loans will only be considered on cash-flowing properties for strong sponsors with real expertise, net worth, liquidity and meaningful guarantees
INTEREST RATE: Case by Case (As low as 7% and 9.75%)
PREPAYMENT: Loans typically have no prepayment penalty after a short lockout period
POINTS: Typically 3%. In some cases part of the origination fee may be structured as an exit fee (deferred until the loan is repaid)
RECOURSE: Most loans are structured with full recourse
PAYMENT RESERVES: Depending upon the type of loan request, the nature of the business plan and the financial strength of the Sponsor, a loan may be structured with an Interest Reserve to cover a portion of the monthly interest payments
EXIT: Borrower must have a viable business plan and exit strategy
ELIGIBLE BORROWER: Single Asset Entity
SPONSORSHIP: Our borrower must have a viable business plan and exit strategy along with relevant track record and experience, net worth and liquidity
LENDING REGION: While the majority of the commercial bridge loans originated are in the Eastern US, if a loan meets underwriting criteria, we would consider loan opportunities in primary markets nationwide
TAX AND INSURANCE ESCROWS: Case by Case
REPLACEMENT RESERVES: Case by Case
SECURITY: First mortgage lien on subject property with personal guarantees. (Additional credit enhancement such other collateral or letter of credit to be determined)
THIRD-PARTY REPORTS: Normal third-party reports for the project/property type. In some cases we can work off existing reports if it meets certain requirements
IMPORTANT: This is not an offer to make a loan, all requests are subject to normal due-diligence and final approval under conditions that are standard for the specific transaction. The above terms and conditions are subject to change without prior notice and other terms and conditions apply.