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Apartment Loan Quick Links |
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| Multifamily Learning Center |
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Fannie Mae Tax-Exempt Bond Credit Enhancement
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| The Fannie Mae Tax-Exempt
Bond Credit Enhancement provides credit enhancement for
tax-exempt bonds issued to finance the acquisition, new
construction, refinancing, or moderate or substantial
rehabilitation of multifamily properties.
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Fannie Mae Tax-Exempt Bond Credit Enhancement Program Guidelines
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Benefits |
- AA+ rating
keeps borrowing costs low
- Ability to
provide affordable housing
- Flexible
financing structures
- Up to 90%
leverage
- 1.15 minimum
DSCR
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Eligibility |
- Multifamily
Affordable Housing properties with Low
Income Housing Tax Credit Rent
Restrictions
- New money
issues, refundings, or credit
substitutions where Fannie Mae takes the
place of an existing credit enhancer
without issuance of new bonds
- Fixed-rate
bonds only
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Amortization |
30 years. |
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Minimum DSCR |
1.15. |
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Maximum LTV |
The greater of 90% of market value or
80% adjusted value for properties with LITC
units equal to or above 90%; the greater of
85% of market value or 75% of adjusted value
for all others. |
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Prepayment Penalty |
The greater of 1% or yield maintenance. |
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Guarantee |
Non-recourse for most loans subject to
standard carve-outs. |
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Subordinate Debt |
All subordinate debt is required to be
fully amortizing. Debt which requires
principal reduction payments is allowed only
if provided by the public sector. |
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