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Underwritten NCF
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- GPRGPROn an annual basis or any specified period, the total actual and potential rent for a Property per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis and the applicable products and features in Part III.
must comply with Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 703.01: Underwritten NCF.
- Underwritten NCFNCFAt underwriting or for any specified period, the amount calculated per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis and the applicable products and features in Part III.
can be based on the Restabilized Residential OccupancyRestabilized Residential OccupancyAchievement of Underwritten NCF for 3 consecutive months after completion of the ROAR Work.
and normalized operating expenses achievable within 24 months after the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower.
.
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Appraisal
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The AppraisalAppraisalWritten statement independently and impartially prepared by a qualified Appraiser stating an opinion of the Property's market value
as of a specific date, and
supported by the presentation and analysis of relevant market information.
must include an opinion of the Property'sProperty'sMultifamily residential real estate securing the Mortgage Loan, including the
fee simple or Leasehold interest,
Improvements, and
personal property (per the Uniform Commercial Code).
market value on both an “as is” and an “as completed” basis that incorporates the ROAR WorkROAR WorkAggregate repairs, replacements, or improvements being performed at the ROAR Property.
to be completed after the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower.
.
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Occupancy During ROAR Work
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Minimum 50%
- Physical Occupancy, and
- Economic Occupancy.
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Minimum DSCR During ROAR Work
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Using the ROAR Stressed NCFROAR Stressed NCFMinimum Underwritten NCF projected to occur during the ROAR Work period at a ROAR Property.
, actual fixed interest rate, and maximum loan amount based on the “as completed” value
- 0.75 on an amortizing basis, or
- 1.00 on an interest-only basis, if applicable.
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Rehabilitation Reserve Agreement
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Required.
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Key Principal Guaranties
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The Key PrincipalKey PrincipalPerson who
controls and/or manages the Borrower or the Property,
is critical to the successful operation and management of the Borrower and the Property, and/or
may be required to provide a Guaranty.
must execute
- a Completion Guaranty (Form 6018), and
- an operating deficit guaranty.
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- Letter of Credit, or
- Cash in Lieu of Letter of Credit
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- Any Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit.
must:
- Any cash escrow used in place of a Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit.
must:
- be limited to 3 years or convert to a Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit.
after 3 years;
- be in place on the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower.
;
- comply with Part V, Chapter 3: Custodial Accounts; and
- equal at least 125% of the difference between the maximum Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by
the Loan Documents, or
a mortgage debt obligation with a Fannie Mae credit enhancement.
amount, based on the
- “as completed” value, and
- “as is” value.
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Additional Credit Support
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May be required.
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Underwriting Fee
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You must:
- charge the BorrowerBorrowerPerson who is the obligor per the Note.
an underwriting fee equal to 3 basis points of the Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by
the Loan Documents, or
a mortgage debt obligation with a Fannie Mae credit enhancement.
amount; and
- pay that amount to Fannie Mae.
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