office 480.682.4501
fax 480.682.4517
BK-0910597
Fannie Mae's Taxable Forward Commitment is streamlined execution that provides a forward rate lock for the permanent loan. This product offers a range of benefits including reduced paperwork, lower legal fees, and a seamless conversion process while eliminating a host of obstacles: no negative arbitrage during the construction period, no need to obtain construction period collateral, no duplicate payments of interest during the construction/lease-up period.
(For a Printable PDF of this program, please click here)
Eligibility All multifamily product types
Loan Amounts $2 million minimum. No maximum
Term/Amortization 5 to 30 year term. Up to 30 year amortization
Interest Rate Fixed rate only
Debt service coverage ratio 1.25x minimum
Loan to value 80% maximum
Personal recourse Non-recourse with standard "Carve-Outs" and Key Principals obligations
Prepayment Yield maintenance with 1% minimum or defeasance
Origination Fee 1% / $20,000 minimum
Commitment Fee 2% (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 $150/unit (waiver considered for special circumstances)
Taxes and Insurance Impounds Required (may be waived for low leverage transactions)
Assumability Assumable with lender approval and a 1% fee
Supplemental Mortgages Available after 1 year (up to two available, plus one more upon sale)
Venture Placement Fee 1% to 2% dependent on property