Fannie Mae’s Tax-Exempt Bond Credit
Enhancement Product offers AAA credit enhancement for both fixed and variable
rate bonds as well as 501(c)(3) bonds. The AAA rating makes it possible to
secure the lowest possible interest rate in the marketplace while our delegated
authority from Fannie Mae makes our process simpler and faster to meet all
allocation deadlines. Competitive fees make it attractive. Adjusted cap rates
make for higher LTV’s. Additionally, Fannie Mae’s Structured 15 Year Cap for 4%
LI HTC properties can now take the anxiety out of variable rate financing. It
provides all the benefits of a longer term cap without the additional costs.
Structured schedules and strike rates result in a substantial savings as
compared to the standard 15 year cap.
PNC ARCS is one of America’s leading
commercial lenders with an acknowledged expertise in multifamily finance and one
of America’s leading Fannie Mae DU S™ lenders for more than a decade.
As a PNC Real Estate Finance Company,
PNC ARCS is part of PNC Financial Services, one of the largest diversified
financial services companies in America. Now PNC ARCS can provide access to debt
and equity financing, construction loans, permanent financing, forward
commitments, tax credits, direct bond purchase programs, mezz, bridge, Fannie
Mae, Freddie Mac, FHA and Capital Markets. One single source to meet our
borrowers’ needs.
The company is now the single source for all real estate financing across the full range of commercial property types.
Beyond the benefits of any specific lending product, PNC ARCS’ experience, expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. No one delivers more.
Product Overview
Eligibility For all multifamily property types that qualify for
tax-exempt bond financing
Loan Amounts $3 million minimum. No maximum
Term/Amortization Up to 30 year term
Up to 30 year amortization (standard)
Interest Only and 35 year amortization is available on a case-by-case basis
Interest Rates
Fixed and variable rates available.
Debt Service Coverage Ratio Fixed: 1.20x (minimum); 1.15x (case-by-case)
Variable: 1.00x minimum at the underwriting rate
Loan to Value Variable rate - 85% maximum Fixed rate - 90% maximum
Interest Rate Caps For variable
rate bonds, interest rate caps must be purchased from a third-party
provider for a minimum of 5 years. Structured 15 year cap is available at
substantial savings.
Personal Recourse Non-recourse with standard "Carve-Outs" and Key Principal obligations