Affordable Housing Apartment Mortgage Loans
Commercial Loan Direct's MAH product provides flexible terms for acquisition or refinance of multifamily projects nationwide which qualify as affordable housing. Eligible properties are those that participate in the Low Income Housing Tax Credit (LIHTC) program, are encumbered by a Housing Assistance Payment (HAP) contract or participate in the Section 8 program (either through vouchers or direct payments). Other, special uses can be considered for MAH status.
- Loan Amount: $1,000,000 minimum
- Loan Term: 18-Year balloon or fully amortizing up to 30 Years.
Special criteria allow for a term of 15 Years. - Amortization: Up to 30 Years 35 Year Amortization for Bond Deals
- Minimum DSC: 1.15 for variable rate 1.20 for fixed rate
- Maximum LTV: 90%
- Fixed Rate: Yes
- Adjustable Rate Available. Priced off the one month or three month LIBOR. Convertible and non-convertible options available.
- Eligible Property: Multifamily, minimum five units
- Eligible Borrower: Single-asset entity
- Occupancy Requirement: 90% physical occupancy
- Tax and Insurance Escrows: Monthly deposits required. May be waived if certain criteria met.
- Replacement Reserves: Underwritten at a minimum $200 per unit per annum. Monthly deposits may be waived if certain criteria are met.
- Recourse: Non-recourse with standard exceptions for fraud
and misrepresentation can be waived for 100% restricted properties. - Commercial Space: Maximum 20% of net rentable area and maximum 20% of effective gross income
- Required Reports: Appraisal, Property Condition Assessment and Phase I
- Prepayment: Yield maintenance or defeasance
- Assumable: Yes
- Supplemental Loans: Eligible for secondary financing after 12 months
- Pricing: Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV
- Rate Lock: Standard 10-day rate lock period. Early / extended
rate lock options available. - Application Deposit: $15,000. Covers all estimated underwriting costs (including processing fee).
- Origination Fee: Yes
- Legal / Closing Fee: Lender's Counsel Fee to be determined at application
- Good Faith Deposit: 2% of loan amount
In its prequalifying review, Commercial Loan Direct will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.