Fixed rate construction and permanent financing for the construction of new apartment properties or for existing apartments requiring substantial rehabilitation. Available for properties throughout the United States.

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ELIGIBLE PROPERTIES

Market rate, affordable, and subsidized multifamily properties.

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ELIGIBLE BORROWERS

Single-asset, special purpose entities, either for-profit or non-profit.

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LOCATION

Nationwide.

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LOAN AMOUNT

No minimum/no maximum (subject to General Loan Parameters).

General Loan Parameters – See chart below. TO COME.

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INTEREST RATE

Fixed-rate, subject to market conditions at the time of rate lock.

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TERM & AMORTIZATION

Interest-only term equal to actual construction period, plus 40 years fully amortizing.

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LIABILITY

Non-recourse.

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MORTGAGE INSURANCE PREMIUM

Depending on property type:

.25% to .65% at Closing

.25% to .65% Annually

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ASSUMABILITY

Fully assumable, subject to HUD approval.

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PREPAYMENT

Typically loans are prohibited from prepayment for the 1st year, then have a 9% penalty declining 1% each year thereafter until 0%. Alternative lockout and prepayment structures are available.

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DAVIS-BACON WAGES

Payment of prevailing wages is required by HUD for all contractors and subcontractors.

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OTHER

• Builders and Sponsors Profit and Risk Allowance of 10% of all construction costs can be used for sponsors with an identity of interest general contractor.
• Escrows required for repairs, mortgage insurance premium, taxes, insurance, and replacement reserves.
• Third party reports include Appraisal, Market Study, Phase I, and future Capital Needs Assessment, plus a review of the final construction and architectural documents by a HUD-approved third party contractor.
• Secondary financing is allowed, subject to HUD guidelines and approval.

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PRICING

Contact your Slate Capital representative for a price quote.