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Permanent Financing

Fannie Mae Immediate Funding (Affordable):

Cinnaire’s immediate loan product is used for properties that are stabilized and can demonstrate the ability to pay debt service. The commitment is a promise to fund immediately, generally within 30 days, based on performance metrics outlined in the commitment letter. Eligible projects include properties undergoing rehabilitation as long as residents are not displaced. Loan terms can be 10, 15, 18, and 30 years, with a 30-year amortization. Eligible loan amounts are a minimum of $500,000. Underwriting criteria for immediate funding for refinance includes a minimum debt service coverage ratio of 1.20x and a maximum LTV of 80%. Underwriting criteria for immediate funding for new 9% tax credit projects includes a minimum debt coverage ratio of 1.15x and a maximum LTV of 90%. Soft loans are allowed, but must be subordinate to the first mortgage. Immediate loans are non-recourse to the borrower, and guarantees are required against fraud and bad acts. Loans will have a yield maintenance provision and the length varies based on the loan term. Prepayment after the expiration of the yield maintenance period is 1% of the outstanding principal balance.

Term Sheet

Cinnaire Permanent Forward Commitment:

Cinnaire’s unfunded forward commitment loan product is used for properties that are either new construction or rehab with new 9% or 4% credits. Loans are underwritten to 1.15, 90% LTV for 9% credits and 1.20 and 90% LTV for 4% credits.  The commitment is a promise to fund within 24-30 months based on underwriting parameters outlined in the commitment letter. The commitment can be converted to a permanent loan after construction, lease up, and stabilization. The Property needs to have 90% occupancy for three consecutive months and confirm underwritten NOI to convert new third parties (i.e. appraisal, Phase I environmental) are not required at conversion. Non-delivery of the loan by the borrower will incur penalty based on a yield maintenance formula.

Loan terms can be 15, 18 or 30 years, with a 30 or 35 year amortization for new construction or significant rehab. Eligible loan amounts restricted to a minimum of $500,000 and higher.  Soft loans are allowed but must be subordinate to the first mortgage. The loan is non-recourse to the borrower, and guarantees are required against fraud and bad acts. Loans will have a yield maintenance provision depending on the length of the term, but no longer than 15 years. Pre-payment after expiration of the yield maintenance period is 1% of the outstanding principal balance.

Term Sheet

FHA Love Funding

  • FHA Section 221(d)(4)
  • FHA Section 223(a)(7)
  • FHA Section 223 (f) Permanent Financing
  • FHA Section 223 (f) Acquisition or Refinance