office 480.682.4501
fax 480.682.4517
BK-0910597
Fannie Mae's Tax-Exempt Bond Credit Enhancement product offers AAA credit enhancement for both fixed and variable rate bonds. The AAA rating makes it possible to secure the lowest possible interest rate in the marketplace while our delegated authority from Fannie Mae makes our process simpler and faster to meet all allocation deadlines. Competitive fees make it attractive. Adjusted cap rates make for higher LTV's.
(For a Printable PDF of this program, please click here)
Eligibility
Loan Amounts $3 million minimum. No maximum
Term/Amortization Up to 30 year term. Up to 30 year amortization
Interest Rate Fixed rates set by prevailing tax-exempt bond market conditions. Variable rates based on BMA
Debt service coverage ratio 1.2x minimum
Loan to value Variable rate - 80% maximum Fixed Rate - 90% maximum
Personal recourse Non-recourse with standard "Carve-Outs" and Key Principals obligations
Prepayment Yield maintenance with 1% minimum
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
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