office 480.682.4501
fax 480.682.4517

BK-0910597

Fannie Mae Direct Bond Purchase

Fannie Mae's Direct Bond Purchase product is specially designed for immediate fundings and forward commitments involving unrated, fixed rate, tax-exempt bond issues up to $8 million.  This product provides a substantial savings for our borrowers.  There is no premium for direct placement to Fannie Mae and no bond underwriter is required.

Product Overview:

(For a Printable PDF of this program, please click here)

Eligibility                                                                                            

Loan Amounts                                                                                        $3 million minimum.  $* million maximum

Term/Amortization                                                                                Up to 30 year term.  Up to 30 year amortization

Interest Rate                                                                                        Fixed rate only.  Very competitively priced

Debt service coverage ratio                                                                1.20x minimum

Loan to value                                                                                     90% maximum

Personal recourse                                                                                Non-recourse with standard "Carve-Outs" and Key Principals obligations

Prepayment                                                                                        Yield maintenance with 1% minimum

Yield maintenance Period                                                                    Required (varies per loan term)

Origination Fee                                                                                    1% or less when applicable

Commitment Fee                                                                                    1% (refundable)

Third Party Fees                                                                                    Includes legal, appraisal, engineering, and environmental reports.  Seismic reports and survey may also be required

Minimum Occupancy Requirement                                                        90% sustained for 90 consecutive days (85% acceptable for special circumstances)

Replacement reserve impounds                                                           Required - not less than $200/unit (waiver considered for special circumstances)

Taxes and Insurance Impounds                                                            Required

Assumability                                                                                        Assumable with lender approval and a 1% fee

Taxable Tails for Additional Financing                                             Fixed or Adjustable

Venture Placement Fee                                                                        1% to 2% dependent on property