Financing affordable housing properties presents multifamily owners and developers with a host of unique and interesting challenges. We help overcome those obstacles. Our team of affordable rental housing experts has extensive experience to draw on when it comes to getting affordable housing transactions to the finish line.

MMA Financial is an innovative and relationship-oriented company.  Talking with one of our lending and investment officers is your best first step.  We can help determine which product will best meet your financing goals in the current lending environment.

Product Term Sheets:
Select a program to read and print information about each product.

Direct Purchase Program - Unenhanced, Tax-Exempt Bond Financing Print Version Benefits Fast and simple execution from a single source for construction and permanent financing.  Trim transaction costs with the elimination of credit enhancement and its associated parties, counsels and costs. Eligible Properties Affordable multifamily, for new construction or rehabilitation. Loan Amount Typically, $5 million minimum. Smaller transactions considered. Equity Capital Available at competitive terms.  Prefer, but do not require using MMA Financial as the equity provider. Interest Rate Fixed, construction-to-permanent.  Term New construction - 42 to 48 years Rehabilitation - 37 to 43 years Amortization Begins at stabilization. New construction - 40 to 45 years Rehabilitation - 35 to 40 years Debt Service Coverage 1.10 to 1.12 Loan to Value 95%, based on market rents and market cap rate. Recourse Full recourse through stabilization; non-recourse thereafter, excluding customary carve-outs. Prepayment Lockout for 15 years from placed-in-service date, after which loan may be prepaid at par. Fees   Financing:   1.00% Construction   1.00% Permanent Due Diligence Fee: $25,000 Attorney Deposit: $10,000 Servicing $6,000 annually 09/2008 - Terms subject to change without notice.  Call for product availability and current rates. Ask us about this financing program. Close Terms

Fannie Mae DUS - Bond Credit Enhancement, Fixed or Variable Rate Print Version Eligible Properties Affordable multifamily; new construction or substantial rehabilitation for new money issues, refunding issues or credit substitutions. Loan Amount $5 million minimum. Equity Capital Available at competitive terms.  Credit Enhancement Fannie Mae Credit Facility to provide AAA-rated credit enhancement.  Term Construction - up to 30 months Permanent - 18 to 35 years Amortization 30 to 35 years Debt Service Coverage Standard minimums: 1.00 for Variable Rate at artificial underwriting interest rate, 1.15 for Fixed Rate, 1.20 for mixed-income Loan to Value 90% maximum for Fixed Rate (85% of value adjusted for the below market financing). For mixed-income properties and Variable Rate, 85% of value (80% of value adjusted for the below market financing. Gap Funding Permitted subject to MMA Financial guidelines, due diligence and underwriting.  MMA Financial will coordinate with the syndicator. Guaranty Construction loan recourse for project completion and loan repayment.  MMA Financial can arrange the construction phase collateral letter of credit for a reasonable fee.  Permanent loan non-recourse, excluding customary carve-outs. Variable Rate Priced off Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index.  Interest Rate Swap or Interest Rate Cap required to hedge against variable rate risk. Subordinate Financing Subordinate mortgages permitted subject to secondary market loan guidelines, completion of due diligence and underwriting. Occupancy Properties must be 90% physically occupied for the 90-day period prior to conversion. Transaction Costs   Due Diligence Fee: Typically, $20,000 to $25,000.  Covers cost of third-party reports (appraisal, market feasibility, phase I environmental and plan & cost review) and lender due diligence. Other Costs: Borrower responsible for legal fees and customary closing costs. Commitment Fee: Negotiable & Competitive 09/2008 - Terms subject to change without notice.  Call for product availability and current rates. Ask us about this financing program. Close Terms

Freddie Mac - Bond Credit Enhancement, Fixed or Variable Rate Print Version Eligible Properties Affordable multifamily; new construction, acquisition or substantial rehabilitation for new money issues, refunding issues or credit substitutions. Loan Amount $5 million minimum Equity Capital Available at competitive terms.  Credit Enhancement Freddie Mac Credit Facility to provide AAA-rated credit enhancement.  Term Construction - up to 36 months; extensions available Permanent - 18 to 35 years Amortization 30 to 35 years Debt Service Coverage 1.15 for transactions with at least 40% affordable units and at least 7 years remaining in 10-year tax credit period, 1.25 without tax credits and 1.15 with HUD Risk Sharing Loan to Value Fixed Rate:   Lesser of 90% market rate value or adjusted value for a property with 90% or greater tax credit units, or 85% for a mixed-income property. Variable Rate:  Greater of 85% market value or 80% adjusted value. Gap Funding Permitted subject to MMA Financial guidelines, due diligence and underwriting.  MMA Financial will coordinate with the syndicator. Guaranty Construction loan recourse for project completion and loan repayment.  MMA Financial can arrange the construction phase collateral letter of credit for a reasonable fee.  Permanent loan non-recourse, excluding customary carve-outs. Variable Rate Priced off Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index.  Interest Cap or Swap Agreement interest hedge required. Principal Reserve Variable Rate executions require a Principal Reserve Fund and is typically based on a 30 to 35 year amortization schedule. Subordinate Financing Subordinate mortgages permitted subject to secondary market guidelines, completion of due diligence and underwriting. Transaction Costs   Due Diligence Fee: Typically, $20,000 to $25,000.  Covers cost of third-party reports (appraisal, market feasibility, phase I environmental and plan & cost review) and lender due diligence. Application Fee: The greater of $3,000 or 0.1% of the Maximum Mortgage Amount Other Costs:     Borrower responsible for legal fees and customary closing costs Commitment Fee: Negotiable & Competitive  09/2008 - Terms subject to change without notice.  Call for product availability and current rates.  Ask us about this financing program. Close Terms

Construction Financing Print Version Eligible Properties Affordable multifamily; new construction or substantial rehabilitation. Loan Amount $3 million minimum, with acceptable permanent loan commitment in place. Equity Capital & Permanent Loan Available at competitive terms.  Term Up to 30 months, extensions available. Interest Rate Floating at spread over 30-day LIBOR Gap Funding Permitted subject to MMA Financial guidelines, due diligence and underwriting.  MMA Financial will coordinate with the syndicator. Appraisal Not necessary unless required by permanent lender. Guaranty Full recourse for project completion and loan repayment.  Subordinate Financing Subordinate mortgages permitted subject to secondary market loan guidelines, completion of due diligence and underwriting. Transaction Costs   Due Diligence Fee: Typically, $20,000. Covers cost of third-party reports (appraisal, market feasibility (only if rental  achievement is a requirement of permanent loan commitment), phase I environmental and plan & cost review) and lender processing. Other Costs:     Borrower responsible for legal fees and customary closing costs. Commitment Fee: Negotiable & Competitive 09/2008 - Terms subject to change without notice.  Contact us for product availability and current rates.Ask us about this financing program. Close Terms

Fannie Mae DUS - Forward Commitment Print Version Eligible Properties Affordable multifamily; for new construction or substantial rehabilitation. Loan Amount $2 million minimum Equity Capital & Construction Loan Available at competitive terms.  Executions Funded Forward or Unfunded Forward options available.  Term Starting at 18 years. Amortization 30 to 35 years Debt Service Coverage Minimum: 1.15 Loan to Value Maximum: 90% Interest Rate Fannie Mae daily pricing indications as adjusted for loan term, amortization and servicing.   For Funded Forward executions, construction phase interest rate derived from permanent interest rate adjusted for rating of construction phase collateral support and construction phase servicing fee. Rate Lock Permanent interest rate locked for the full construction and permanent phases and rate lock typically occurs 1 to 10 days prior to closing.  Subject to loan committee approval. Gap Funding Permitted subject to MMA Financial guidelines, due diligence and underwriting.  MMA Financial will coordinate with the syndicator. Guaranty Permanent loan non-recourse, excluding customary carve-outs. Construction loan full recourse for project completion and loan repayment. Subordinate Financing Subordinate mortgages permitted subject to secondary market loan guidelines, completion of due diligence and underwriting. Transaction Costs   Due Diligence Fee: Typically, $20,000.  Covers cost of third-party reports (appraisal, market feasibility, phase I environmental and plan & cost review) and lender due diligence and processing. Other Costs:     Borrower responsible for legal fees and customary closing costs. Commitment Fee: Negotiable & Competitive 09/2008 - Terms subject to change without notice.  Contact us for product availability and current rates. Ask us about this financing program. Close Terms

Freddie Mac - Forward Commitment Print Version Eligible Properties Affordable multifamily; for new construction or substantial rehabilitation. Loan Amount $2 million minimum Equity Capital & Construction Loan Available at competitive terms.  Executions Funded Forward or Unfunded Forward options available.  Term / Amortization Maturities from 18 to 30 years.  Amortization schedule up to 35 years. Debt Service Coverage 1.15 minimum, 1.10 allowed with HUD Risk Sharing. Loan to Value Maximum: 90% Interest Rate Freddie Mac’s pricing is risk-based and will fluctuate until Freddie Mac issues its commitment.  For Funded Forward executions, construction phase interest rate floats and is based on the one-month Freddie Mac Reference Bill; an Interest Rate Cap is not required. Rate Lock Permanent interest rate locked for the full construction and permanent phases and typically occurs 5 to 10 days prior to closing.  Subject to loan committee approval. Gap Funding Permitted subject to MMA Financial guidelines, due diligence and underwriting.  MMA Financial will coordinate with the syndicator. Guaranty Construction loan full recourse for project completion and loan repayment.  MMA Financial can arrange for the construction phase collateral letter of credit for a reasonable fee.  Permanent loan non-recourse, excluding customary carve-outs. Subordinate Financing Subordinate mortgages permitted subject to secondary market loan guidelines, completion of due diligence and underwriting. Transaction Costs Due Diligence Fee: Typically, $20,000.  Covers cost of third-party reports (appraisal, market feasibility, phase I environmental and plan & cost review) and lender due diligence and processing. Application Fee: The greater of $3,000 or 0.1% of the Maximum Mortgage Amount. Other Costs:     Borrower responsible for legal fees and customary closing costs. Commitment Fee: Negotiable & Competitive 09/2008 - Terms subject to change without notice.  Contact us for product availability and current rates.  Ask us about this financing program. Close Terms

Fannie Mae DUS - Immediate Delivery Print Version Eligible Properties Affordable multifamily; for acquisition or refinance of stabilized properties. Loan Amount $2 million minimum Equity Capital Available at competitive terms.  Term / Amortization Minimum term: 15 years.  Amortization schedule up to 35 years. Debt Service Coverage 1.15 minimum for affordable, 1.20 for stand-alone Section 8 HAP and preservation Loan to Value 90% maximum for affordable, 80% for stand-alone Section 8 HAP and preservation Interest Rate Fannie Mae daily pricing indications as adjusted for loan term, amortization and servicing.  Rate Lock Typically occurs within 30 to 45 business days of verified property stabilization at 90% occupancy for 3 consecutive months and usually 10 days prior to funding.  Subject to loan committee approval. Guaranty Non-recourse, excluding customary carve-outs. Subordinate Financing Subordinate mortgages permitted subject to secondary market loan guidelines, completion of due diligence and underwriting. Fannie Mae’s Supplemental Loan Program provides an attractive source of subordinate debt on properties beginning 12 months after loan closing. Transaction Costs Due Diligence Fee: Typically, $20,000.  Covers cost of third-party reports (appraisal, market feasibility, phase I environmental and plan & cost review) and lender due diligence and processing. Application Fee: The greater of $3,000 or 0.1% of the Maximum Mortgage Amount. Other Costs:     Borrower responsible for legal fees and customary closing costs. Rate Lock Deposit: 2% of loan amount, refunded after completion of all delivery and funding processes through Fannie Mae Commitment Fee: Negotiable & Competitive 09/2008 - Terms subject to change without notice. Contact us for product availability and current rates.  Ask us about this financing program. Close Terms

Freddie Mac - Immediate Delivery Print Version Eligible Properties Affordable multifamily; for acquisition or refinance of stabilized properties. Loan Amount $2 million minimum Equity Capital Available at competitive terms.  Term / Amortization The lesser of: 18 years, or the remaining term of the tax credit compliance period, plus 3 years.  Amortization schedule up to 35 years. Debt Service Coverage 1.15 minimum if at least 7 years remaining in the 10-year period following the initial placed-in-service date, and a 1.10 minimum with HUD risk sharing.  Otherwise, a 1.25 coverage factor would apply. Loan to Value 90% maximum if at least 7 years remaining in the 10-year period following the initial placed-in-service date; otherwise, 80% LTV factor would apply. Interest Rate Freddie Mac’s pricing is risk-based and will fluctuate until rate lock.  Freddie Mac will provide an initial indicative interest rate to be used in the underwriting.   Rate Lock Typically occurs within 30 to 45 business days of verified property stabilization at 90% occupancy for 3 consecutive months and usually 10 to 15 days prior to funding.  Subject to loan committee approval. Guaranty Non-recourse, excluding customary carve-outs. Subordinate Financing Subordinate mortgages permitted subject to secondary market loan guidelines, completion of due diligence and underwriting. Transaction Costs Due Diligence Fee: Typically, $20,000.  Covers cost of third-party reports (appraisal, market feasibility, phase I environmental and physical needs assessment and/or plan & cost review) and lender due diligence and processing. Freddie Application Fee: The greater of $3,000 or 0.1% of the Loan Amount Rate Lock Deposit: 2% of loan amount, refunded after completion of all delivery and funding processes through Freddie Mac. Other Costs:     Borrower responsible for legal fees and customary closing costs. Commitment Fee: Negotiable & Competitive. 09/2008 - Terms subject to change without notice. Contact us for product availability and current rates.  Ask us about this financing program. Close Terms

09/2008 - Terms subject to change without notice.  Call for product availability and current rates.

Need financing for market-rate apartments, senior housing and care facilities or other commercial properties?
Turn to our sister company, MMA Realty Capital for an array of commercial real estate finance and investment management solutions, including Fannie Mae, Freddie Mac and FHA/HUD lending programs for market-rate apartments, independent senior living, assisted living facilities and student housing.