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
$1 million to just over $92 million
More than $1.2 billion
Deals included project-based Section 8 HAP contracts, refinances and acquisitions.