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DEVELOPMENT
(Lending Source- Banks, Life Co / Pension, Private Debt Funds, Institutions)
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55-65% LTC
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Amortization: 20- 30yr (Typically 25yr)
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3yr Term (W/ Extension options)
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Recourse (W/ Completion Guarantee)
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Rates (Today): 4.5%- 5.5% fixed
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Full IO (During construction Period)
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Up to 80% LTC
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2- 3yr Term (W/ Extension options)
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Recourse (W/ Completion Guarantee)
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Rates: 8.5%- 13% fixed
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Prepayment Penalty: Minimum Interest Period
Debt
Funds
Conventional Development
Financing
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Up to 85% LTC
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Amortization: up to 30- 40yr
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2- 3yr Term (W/ Extension options)
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Non- Recourse (W/ Completion Guarantee)
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Rates: 3.8%- 4.5% fixed
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(The development loan rolls into a permanant loan)
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Prepayment Penalty: Yield Maintenance / Defeasance
HUD-D4
PROGRAM
HEAVY VALUE ADD
(Lending Source- Banks, Private Debt Funds)
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55- 70% LTC
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Amortization: 20- 30yr (Typically 25yr)
-
3yr Term (W/ Extension options)
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Recourse (non- recourse up to 65% LTV)
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Rates (Today): 4.5%- 5.5% fixed / floating rate
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1-2 years IO (During Consturction Period)
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Prepayment Penalty: Step Down Pre-pay
Banks
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Up to 75% LTC
-
2- 3yr Term (W/ Extension options)
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Non- recourse
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Rates (Today): 7.5%- 10%- floating rate.
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Full IO
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Prepayment Penalty: Minimum Interest Period
Private
Debt
Funds
LIGHT VALUE ADD
(Lending Source- Banks, Private Debt Funds)
-
55- 70% LTC
-
Amortization: 20- 30yr (Typically 25yr)
-
3yr Term (W/ Extension options)
-
Recourse (non-recourse up to 65% LTV)
-
Rates (Today): 4.5%- 5.5% fixed / floating rate
-
1-2 years IO
-
Prepayment Penalty: Step Down Pre-pay
Banks
-
Up to 80% LTC
-
2- 3yr Term (W/ Extension options)
-
Non- recourse
-
Rates (Today): LIBOR + 1.70- 4.50 (All in Rates- 4- 7% Floating).
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Full IO
-
Prepayment Penalty: Minimum Interest Period
Private Debt
Funds
-
65- 75% LTC
-
3yr Term (W/ Extension options)
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Ammortization: 30yr
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Non- recourse
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Rates (Today): 4.3%- 5.25% Fixed.
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1-3 years IO
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Prepayment Penalty: Step Down Pre-pay
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Freddie Value- Add / Fannie MOD
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Property Needs to be at 90% Occupied or better
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Amortization: 30yr
-
up to 80% LTC
-
Term: 3yr (1 +1) extension options
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Non-recourse
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Rates: 4.25- 5.5% Floating
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Full IO
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Prepayment Penalty: Yield Maintenance / Defeasance
Agency
Life Co /
Pension / Institution
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55- 75% LTC
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Term: 3yr, 5yr, 7yr, 10yr Term (W/ Extension options)
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Amortization: 20- 30yr (Typically 25yr)
-
Recourse (non-recourse up to 65% LTV)
-
Rates (Today): 4.5%- 5.5% fixed / floating rate
-
1-2 years IO
-
Prepayment Penalty: Step Down Pre-pay
Banks
-
65- 75% LTC
-
Amortization: 30yr
-
Term: 3yr, 5yr- (W/ Extension options)
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Non- recourse
-
Rates (Today): 4.3%- 5.25% Fixed.
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1-3 years IO
-
Prepayment Penalty: Step Down Pre-pay
Life Co / Pension / Institution:
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Freddie / Fannie / HUD
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Fannie / Freddie:
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(Property Needs to be at 90% Occupied or better)
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Up to 80% LTV (at 1.25 DSCR)
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Amortization: 30yr
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Term: 5yr, 7yr, 10yr, 12yr
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Non-recourse
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Rates: 4.5- 5% Fixed
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IO: 1yr, 3yr, 5yr, Full IO (Depends on Loan Term, Location, and sponsor quality).
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Prepayment Penalty: Yield Maintenance / Defeasance
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Up to 85% LTV (at 1.25 DSCR)
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Term: 30- 40yr (Term)
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Amortization: up to 30- 40yr
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Non-recourse
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Rates: 3.9- 4.5% Fixed
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Prepayment Penalty: Yield Maintenance / Defeasance
HUD
Agency
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