Permanent Financing

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.