Skip to Page Content | Skip to Site Navigation | Skip to Section Navigation

Cash Preservation Loans: The Time is Right

April 6, 2017

Looking for fast, efficient funding to preserve affordable housing? Our Cash Loan for Affordable Housing Preservation  is a good option—and it’s getting better all the time.

Take advantage of better pricing in 2017: We plan to aggressively bid on these loans to do more preservation deals.

With the potential for tax reform and a possible rise in interest rates, borrowers may find this product is the best route for their immediate-funding, cash transactions.

So What Can You Now Expect?

  • Better pricing
  • Higher proceeds and lower DCR requirements: as low as 1.2x in certain instances

We’ll consider waiving our CME 1.25x DCR underwriting requirement if:

- it’s a long-term Section 8 property
- there’s a big affordability gap between market rents and proposed, affordable rents
- the sponsor is experienced in this market, or in a similar market 

As always, we offer fast, efficient execution with the added bonus of capital markets pricing and holding our spreads for 90 days while the loan is in final underwriting. It’s immediate, permanent financing with a maximum 15-year loan term. Choose either a fixed- or floating-rate loan. And don’t forget, we support eligible mixed-use properties too.

Look for more to come as we continue to strengthen this offering for your borrowers.

2016 Cash Preservation Loans Highlights

Loan Amount
$1 million to just over $92 million

Loan Average
$10.5 million

Total Funded
More than $1.2 billion

Deals included project-based Section 8 HAP contracts, refinances and acquisitions.