Underwriting

Requirements

You must:

• reflect the impact of the rent and income restrictions in your underwriting;
• apply the MAH PropertyMAH PropertyProperty that: complies with Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702: MAH Property Eligibility; and is underwritten per Part III, Chapter 7: Multifamily Affordable Housing Properties. underwritten DSCRDSCROn an annual basis or any specified period, the ratio of Net Cash Flow to the total of:  principal, interest, and required Mezzanine Financing or Hard Pay Preferred Equity payments. , underwritten LTVLTVRatio of the actual aggregate UPB of the Mortgage Loan, plus any Pre-Existing Mortgage Loans, plus any Hard Pay Preferred Equity, plus any Mezzanine Financing, to the value of the Property, expressed as a percentage.  , and underwriting Interest Rate Floors per Form 4660 to the:
  • LIHTC Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03A: LIHTC;
  • HAP Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03B: HAP Contract; and
  • Rent and Income Restricted Properties Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03C: Properties with Both Rent Restrictions and Income Restrictions;
• apply the conventional mortgage loan underwritten DSCRDSCROn an annual basis or any specified period, the ratio of Net Cash Flow to the total of:  principal, interest, and required Mezzanine Financing or Hard Pay Preferred Equity payments. , underwritten LTVLTVRatio of the actual aggregate UPB of the Mortgage Loan, plus any Pre-Existing Mortgage Loans, plus any Hard Pay Preferred Equity, plus any Mezzanine Financing, to the value of the Property, expressed as a percentage.  , and underwriting Interest Rate Floors per Form 4660 to the:
  • Rent or Income Restricted Properties Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03D: Properties with Either Rent Restrictions or Income Restrictions;
  • SPP Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03E: Special Public Purpose; and
  • SIA Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03F: Sponsor-Initiated Affordability; and
• maintain, in your Servicing FileServicing FileYour file for each Mortgage Loan serviced. , a copy of any applicable
  • Affordable Regulatory AgreementAffordable Regulatory AgreementRecorded or unrecorded regulatory, land use, extended use, restrictive covenant, or similar agreement or restriction that is imposed by a Public Entity, placing rent, income, or other affordability restrictions on the use or occupancy of the Property, but which does not include a HAP Contract. , and/or
  • Private Affordability AgreementPrivate Affordability AgreementRecorded or unrecorded regulatory, land use, extended use, restrictive covenant, agreement, or restriction that is imposed by any non-Public Entity, placing rent, income, or other affordability restrictions on the use or occupancy of the Property. .