Credit Facility

• New or repeat Fannie Mae Borrowers.
• Available for all Property types and features.

At least $100 million at initial closing and not to exceed any applicable Maximum Facility Limitations per the Master Credit Facility Agreement.

All structuring options/features subject to the terms of the Master Credit Facility Agreement.

• All Mortgage Loans must be cross-collateralized and cross-defaulted.
• Ability to add, release, or substitute Properties.
• Borrow-up availability to access trapped equity.

Minimum 5-year loan term and a maximum loan term of:

• 15 years for fixed rate advances; and
• 10 years for variable rate advances.

The Credit Facility terminates upon its full repayment or the Latest Facility Termination Date (typically 15 years from initial Mortgage Loan Origination Date or 5 years beyond the loan term of the initial advance).

• Fixed, variable, or a combination of fixed and variable tranches. Variable-rate advances may be converted to fixed-rate.
• An Interest Rate Cap or other Interest Rate Hedge is generally required for variable-rate advances.

Interest-only and amortizing available, based upon property and pool performance.

• Up to 75%, depending upon asset class and product type.
• Credit Facilities that only include Multifamily Affordable Housing Properties may go up to 80%.

• Generally starting at 1.25x depending upon product type and features.>/li>
• Multifamily Affordable Housing Properties may start at 1.20x.

Flexible prepayment options available, including partially pre-payable debt, yield maintenance and declining prepayment premium.

A single purpose, bankruptcy-remote entity is required for each Borrower and any general partner, managing member, or sole member that is an entity. Borrowers must have common ownership and control across the Credit Facility.

30- to 180-day commitments.

• The timeframes for Rate Lock and closing are subject to the number of properties, property specific issues, locations, complexity of ownership issues, complexity of closing or execution requirements, and the level of document negotiation.
• The minimum closing timeframe for a new Credit Facility is 60 days from signed term sheet/ loan application. For collateral additions and substitutions, the closing timeframe is 30 days from signed application.

Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.

Replacement Reserve, tax, and insurance escrows are typically required, but may be waived based on the strength of the transaction.

Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.

Assumption of the entire facility is permitted upon satisfaction of the requirements of the Master Credit Facility Agreement.

• The Lender’s Origination Fee must be approved by Fannie Mae and is determined on a case-by-case basis prior to application based on the size and make-up of the Collateral Pool for the Initial Advance.
• Fannie Mae charges a structuring fee of 10 basis points on each advance.
• Other fees (e.g., due diligence, substitution, release, assumption, and review) will apply.

Financial and operating covenants and geographic diversity requirements determined on a case-by-case basis.