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Fannie Mae Multifamily Affordable Housing Loans

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Multifamily Loan for Life™
Multifamily Loan for Life
Available for affordable housing properties and LIHTC properties with expiring tax credits, Crefcoa's Multifamily Loan for Life eliminates interest rate risk preserving the integrity of your student housing investment.
  • Fixed rates up to 30 years
  • No balloon payments
  • No interest rate resets / adjustments
  • Non-recourse
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Apartment Loans for Affordable Housing Properties

Crefcoa provides apartment loans for affordable housing properties through the following programs:

Fannie Mae Affordable Housing Loans and LIHTC Program Overview

The Fannie Mae Affordable Housing Loan program provides permanent, long-term fixed rate debt for financing or refinancing for stabilized multifamily housing properties with regulatory based rent or income restrictions and LIHTC properties with expiring tax credits.
  • $1 million minimum loan size
  • 1.15 DSCR
  • Up to 80% LTV
  • Flexible underwriting specific to affordable housing properties
  • Non-recourse and assumable
  • Properties that accept tenant based Section 8 rental subsidies are processed through the Fannie Mae Small Loan or DUS program and not the Affordable Housing program

Fannie Mae Multifamily Affordable Housing Loan and LIHTC Program Guidelines

Eligible Properties Eligible property types include:
  • Properties with HUD Section 8 HAP Contracts.
  • Expiring Low-Income Housing Tax Credit deals.
  • Refinancing of existing tax-exempt bond deals.
  • Properties eligible for the Rental Assistance Demonstration (RAD) program.
  • Properties with existing Rural Housing Service (RHS) Section 515 loans.
  • Loans insured under Sections 202 or 236 of the National Housing Act.
  • Properties that accept tenant based Section 8 rental subsidies are processed through the Fannie Mae Small Loan or DUS program and not the Affordable Housing program.
Income Restrictions Low-income qualifying restrictions:
  • 20% or more units rented to families earning at or below 50% of Area Median Income (AMI).
  • Or, 40% or more units rented to families earning at or below 60% of AMI.
  • Restriction must be recorded regulatory based rent or income restrictions.
  • Or, Project-Based Housing Assistance Payments contract (Section 8) covering 20% or more units.
Restabilization A restabilization reserve equal to 6 months debt service is generally required. May be reduced or waived on an exception basis.
Eligible Locations All 50 states, Puerto Rico, U.S. Virgin Islands, Guam.
Loan Size $1,000,000 with no maximum.
Fixed Rate Term Up to 30 years.
Floating Rate Available.
Amortization 30 years.
Minimum DSCR 1.20.
Maximum LTV 80% for purchase and rate and term refinance. 75% for cash out refinances and 5-year fixed rate term.
Minimum Occupancy 90% physical / 80% economic for 90 days prior to closing.
Prepayment Penalty Flexible prepayment options available including yield maintenance and declining prepayment premium.
Guarantee Non-recourse for most loans subject to standard carve-outs.
Assumable Yes, subject to lender approval.
Impounds Tax and insurance required.
Replacement Reserves Required.
Rate Lock At commitment. 30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
Borrower Single asset single purpose bankruptcy remote U.S. entity.
Sponsor Requirements
  • 680 minimum credit score (unlike the Small Loan program, some flexibility with credit score and overall credit in general)
  • Sponsor should either have experience with rent/income restricted properties or have professional third party management with the necessary experience
  • Absentee ownership requires two years comparable multifamily ownership experience
Underwritten NOI Fannie requires a minimum expense for specific expense line items, e.g. maintenance and repairs, management, payroll, general and administrative and replacement reserves.
More Fannie Mae Affordable Housing Financing Options
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