MULTIFAMILY NEW CONSTRUCTION & SUBSTANTTIAL REHAB LOAN PROGRAM

Eligible Properties Multifamily dwellings. Projects may be detached, semi-detached, row houses, or multifamily structures. Moderate Income, market rate, subsized, tax-credit properties all eligible
Borrower

Single asset mortgagor, sole proprietorship, partnership, corporation or trust. Profit motivated or non-profit entity.
Loan Benefits TMG's Construction & Substantial Rehab loan programs offer fixed rates for 40 years, non-recourse. 20% - 50% less equity requirement than bank financing. The loan amount is not limited by appraised value and will often exceed the appraised value.
Loan Amount No Minimum Amount - $50,000,000
Loan Term 6 month, 3, 5, 7 and 10 year terms available.
Amortization 40 years.
Recourses Non-recourse.
Assumability Assumable, subject to approval and applicable fees
Prepayment Five-year lockout then 5%, 4%, 3%, 2% 1% of loan amount.
Loan to Value Up to 90% for profit motivated organizations
Up to 95% for non-profit organizations.
Debt Coverage Ratio Minimum 1.11 to 1.
Maximum Mortgage The lesser of 90% of replacement costs, debt supported by 90% of NOI at stabilized rents, or 90% of the statutory mortgage limits.
Substantial Rehab Qualifications Must include at least one of the following:
$6,500 per unit adjusted by the local high cost factor, 15% of the post rehab appraised value, or more than one building system is being replaced (e.g. roof, ceiling, wall or floor structures, foundations, plumbing, HVAC or electrical systems.)
Commercial Space No more than 10% of the net rentable square footage and no more than 15% of total gross receipts (20% and 30%, respectively, for projects in defined urban renewal areas).
Interest Rate Based on current market conditions. Rate fixed upon issuance of Firm Commitment by FHA. Provides taxable or tax-exempt financing for qualified projects.
Occupancy Underwritten with a minimum vacancy of 7%.
Financing Fees Depends on loan size.
FHA Application Fees 0.3% of the loan amount.
Davis-Bacon Wages

Required.
Builder's & Sponsor's Profit Up to 10% of total costs if borrower has an identity of interest general contractor.
IProcessing Time Pre-application review by HUD: 45 days
Firm commitment review by HUD: 45 days
Shorter processing time under Multifamily Accelerated Processing (MAP)
Loan Request Package Include the following in your request for a loan quote:
1. Property description and location map.
2. Number of units with breakdown of proposed rents by unit type.
3. Proforma operating budget, including breakdown of other income.
4. Aquistion cost of the land.
5 . Digital Photos of Property.

MULTI FAMILY PROGRAMS

PROGRAM SUMMARY

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