Income Property Loans can
be secured for property that already has a source of income, such
as rent, which can be used to make the loan repayments. At Ron Goodlin
Commercial Mortgages, we use our understanding of Income Property
Loan financing options to help our clients identify the best financing
for their developments, properties, and renovation projects.
The wide range of available Income Property Loan options can be
structured in many different ways, with loan amounts from $500,000.00
to $100 million and terms from 5 to 40 years. With each client,
we create the best possible combination of financing, yielding an
optimal mix of rates, repayment terms, cash flow, taxes, and fees,
using sources that include investors, traditional banks, government
sponsored agencies, and governmental agencies.
Below is an overview of some of the many Income Property Loan programs
that Ron Goodlin Commercial provides.
Fannie
Mae is a government sponsored enterprise that was formerly called
Federal National Mortgage Association (FNMA). It provides a
wide range of Income Property Loans.
DUS
Adjustable Rate Mortgage
Short
and long-term adjustable rates for refinance, purchase or
construction take-out of quality, well-located multifamily
properties
Large
single loan of at least $25 million or a pool of loans totaling
$50 million filled over a 12 month period. Properties in DMBS
pools must have common control, not ownership, and there is
no requirement for cross collateralization or geographical
diversity.
This variable-rate financing alternative benefits property
owners seeking the lowest pay rate. Loans are funded through
the issuance of a DMBS, which is sold at a discount and recast
at par every 3, 6 or 9 months in lieu of a stated interest
rate. With current all-in rates below 2.5%, the DMBS can result
in substantial cash flows and huge savings over the life of
the loan.
To-be-built
or substantially rehabilitated multifamily properties - underwritten
so that 51% of the units are affordable to tenants earning
100% of median income. No actual income or rent restrictions
are placed on the property; however, coverage calculations
will assume these rent levels.
Loan processing and closing are coordinated
with a construction lender prior to construction start. The
permanent loan rate may be fixed prior to start of construction
through Fannie Mae cash purchases. Lender provides a letter
of credit to Fannie Mae during construction and lease up.
Alternatively, permanent loan proceeds
may be invested in a guaranteed investment contract during
construction, with construction lender funding a separate
loan.
To-be-built
or substantially rehabilitated multifamily properties that
have tenant income or rent restrictions based on tax-exempt
bond requirements or low income housing tax credits. Loan
processing and closing are coordinated with qualified Construction
Lender prior to construction start.
Permanent loan rate may be fixed prior
to start of construction through Fannie Mae cash purchase,
or sale of tax-exempt bonds. Construction lender provides
letter of credit to Fannie Mae during construction and lease
up.
Single-asset
or pool transactions - refinance, acquisition and moderate
rehabilitation of large loans or a portfolio of loans for
garden, mid-rise and high-rise apartments, cooperative properties,
seniors housing and assisted living properties.
Long-term
AAA credit enhancement for well maintained and well located
garden, high rise, or mid-rise multifamily properties. This
highest rated enhancement is available to refund current tax-exempt
or enhance fixed or variable rate bonds.
FHA, or the Federal Housing Authority,
insures multifamily loans originated by FHA approved lenders
for the construction, substantial rehabilitation, and acquisition
and refinancing of apartments and health care facilities.
Apartments:
New Construction /
Substantial Rehab
Section 220, 221(d)(4), and 221(d)(3)
New construction
or substantial rehabilitation of multifamily and seniors (no
services) properties that are a minimum of 3 years old.
Apartments:
Acquisition or Refinance
Section 223(f)
Acquisition
or refinance of constructed or substantially rehabilitated
multifamily or seniors (no services) properties that are a
minimum of 3 years old.
Healthcare:
Acquisition or Refinance
Section 232
Pursuant to 223(f)
Acquisition
or refinance, with or without repairs, of existing projects
not requiring substantial rehabilitation. Eligible properties
must be a minimum of 3 years old and may include intermediate
care, board and care, residential care, assisted living, and
skilled nursing facilities.
Additional property types may include limited adult day care
or independent living. Financing is not available for properties
charging substantial up-front admission fees. No equity take-out
is permitted.
Healthcare:
New Construction /
Substantial Rehab
Section 232
New construction,
expansion or substantial rehabilitation of intermediate care,
board and care, residential care, assisted living, and skilled
nursing facilities. Additional property types include limited
adult day care or independent living. Financing is not permitted
for properties charging substantial up-front admission fees.
Healthcare:
Alterations, Repairs or Improvements
Section 241
Improvements
or additions to multifamily properties, nursing homes, assisted
living facilities, intermediate care facilities or group practice
facilities with existing mortgage insurance under any section
of Title II of the National Housing Act.
Additional financing options include FF&E
for nursing homes, assisted living facilities and group medical
practices.
Section 241 financing may also be used
to fund the replacement of obsolescent equipment or new equipment
for healthcare facilities.
Lower
the interest rate, the debt service coverage and/or provide
additional funds to cover project improvements for multifamily
or nursing home properties already insured under the 223(f),
221(d)(3), 221(d)(4), 220, 232, and 241 insurance programs.
Pre-leased
and speculative development of new properties, or renovation
and repositioning of existing properties. Flexible loan structure,
pricing, loan to cost ratios, and recourse requirements.
