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Affordable
Housing Lending Pool Term Sheet
Loan
Amounts:
Minimum loan size
- $1,000,000, Maximum - currently $9,000,000 (to any one
project or to any one borrower). The maximum loan amount
is subject to change depending on the size of the lending
pool.
Interest
Rate:
For loans involving
tax credits, the rate will be fixed for the
construction period plus a 15 year term, for
a maximum of 16.5 years. For non-profit borrowers,
the rate will be fixed for fifteen (15) years.
The rate will be priced to secondary market,
currently 200 bp over interpolated Treasury.
For other loans, a minimum of 225 Basis Points
(2 1/4%) over the 5-year Treasury Constant Annual
Maturity Rate. The interest rate is adjusted
at each five (5) year anniversary of the loan
to no less than 225 basis points over the then
5-year Treasury Constant Annual Maturity Rate.
The initial start rate is the floor, and the
ceiling is 300 basis points (3%) over the initial
start rate. NOTE: The interest rate is fixed
at time of borrower acceptance of commitment.
The interest rate is fixed during the construction
or rehabilitation period.
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Loan
Terms:
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7,
10, 15, or 16.5 year loan terms are offered. NOTE:
16.5 year loan terms only available to projects
with Low Income Housing Tax Credit allocation
approvals. The loan term includes the construction
or rehabilitation period.
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Loan
Amortization:
Thirty (30) year
schedule. A 25-year schedule may be used for rehab loans,
and will be used for loans with subordinate financing
and all Low Income Housing Tax Credit transactions.
Term of any subordinate debt must be equal to or greater
than the term of first mortgage.
Loan
to Value:
Maximum
of 80% loan to appraised value or total development
costs, whichever is less. NOTE: Maximum of 90% combined
loan to value on transactions with subordinate financing,
based upon the lesser of appraised value or total development
costs.
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Debt
Service Coverage:
1.15 to 1 first
mortgage coverage. Properties ten years old or greater
must have a minimum 1.20 to 1 first mortgage coverage.
1.05 to 1 combined coverage with subordinate financing.
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Vacancy
Factor:
No less than
a 5% vacancy factor will be used in loan underwriting.
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Prepayment:
No prepayment
penalty if permanent loan portfolioed by First
Housing. NOTE: If First Housing sells permanent
loan into secondary market, borrower must abide
by new permanent lender's prepayment terms.
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Commitment
Fee:
Two percent
(2%) of the committed loan amount. NOTE: A $5,000.00
non-refundable Application/Loan Processing Fee
is required with First Housing's loan application.
The Application/Loan Processing Fee is credited
to the 2% Commitment Fee at the time of closing.
Additional
Points of Information::
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ALL
LOANS MUST HAVE AN AFFORDABLE HOUSING "INITIATIVE"
ASSOCIATED WITH THE REQUEST, i.e. TAX CREDITS,
S.A.I.L. LOAN, SECTION 8 ASSISTANCE, HAP CONTRACT,
FEDERAL OR LOCAL GOVERNMENT GRANT, ETC.
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All
borrowers must be single asset entities.
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All
loans require monthly deposits to real estate
tax, insurance, and reserve for replacement
escrows. Minimum requirements for reserves
for replacement: $200.00/unit/year.
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Construction
completion escrows and initial operating deficit
escrows may be required.
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All
properties must be on dedicated, all-weather
roads, and must be serviced by public water
and sewer systems.
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Above interest rates, terms
& conditions are subject to change without
notice depending on current market conditions.
Note: This term sheet is
not intended to be all-inclusive. Please contact
a First Housing loan officer for additional
information concerning this lending program:
(813) 289-9410.
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1715 N. Westshore Boulevard • Suite 700 •
Tampa, Florida 33607
(813) 289-9410 • FAX (813) 289-5580
E-mail: mail@firsthousingfl.com
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