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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.
Effective May 15, 2009, MuniMae sold its Agency lending operations to Oak Grove Commercial Mortgage, LLC, and will no longer be providing services in this business segment.
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.

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