STANDARD PRODUCT LINE

• DUS lenders have full authority up to $20 million. Loan size above $20 million available with Fannie Mae approval
• Commercial space - maximum of 20% space/income
• Occupancy - minimum 90% for ninety days

STANDARD FEATURES

• Fixed or adjustable rate, balloon mortgages with 5, 10, 15, or 18-year terms
• Interest only mortgage available
• Fully amortizing mortgages and other specially negotiated terms available
• Thirty year amortization available
• "Non-recourse" except for certain loan violations , which are typical in the industry
• Assumable in accordance with the limiting conditions of the loan documents
• Standard mortgage documents
• Pre-payable with yield maintenance or defeasance

UNDERWRITING AND INTEREST RATES

• Interest rates are offered by Fannie Mae and our correspondent mortgage company under a four-tier interest rate structure. Interest rates are based on spreads over benchmark "on the run" Treasury rates. Best interest rates are available for mortgages with a higher debt service coverage (DSC) and lower loan-to-value ratios
• For a standard transaction, the following sets forth the minimum DSC ratios and maximum LTV ratios acceptable for each pricing tier

   

  TIER	Min DSC ratio	Max LTV ratio
  One	115%	80%
  Two	125%	80%
  Three	135%	65%
  Four	155%	55%

• Tier Three and Four loans also offer reduced due diligence requirements and less documentation. Market affordable housing (MAH) properties (such as those with LIHTC) may be eligible for special underwriting and special pricing

COMMITMENT FEES

• When commitment is accepted, a refundable commitment fee of two percent (2%) of the loan amount is required (3% for Early Rate Lock)

ORIGINATION FEES

• The amount of the origination fee is a function of the size, risk and complexity involved in each transaction

SERVICING

• (Once the mortgage is closed  and purchased by Fannie Mae) our correspondent mortgage company services the mortgage

REPLACEMENT RESERVES

• Annual deposits are generally funded for nearly all properties - flexible funding terms available

STUDIES AND REPORTS

• Appraisal using Fannie Mae standards
• Engineering Study
• Phase I Environmental Study

OTHER FEATURES

• Supplemental Financing - permitted after one year with Fannie Mae's approval. Fannie Mae currently offers a supplemental loan program to meet this need
• Assumable upon payment of 1% fee and satisfactory credit review of new borrower and at lender's option
• Processing Time - 30 to 60 days from complete application to commitment
• Early rate lock available

SPECIAL PRODUCT LINES

• Forward commitments available for new construction of Low Income Housing Tax Credit (LIHTC) developments, Tax Exempt Bond transactions and Market Rate properties affordable to tenants at or below to 100% of area median income
• Credit Enhancement available for fixed rate bonds and "Lower Floaters"
• Financing available for Cooperative ownership
• 5-50 Program with reduced reporting requirements for projects with five (5) to fifty (50) units
• Adjustable Rate Mortgage (ARM)
• Permanent fixed-rate financing for senior housing including independent living, congregate care and assisted living
• Negotiated transactions for large multifamily loans and multifamily portfolio transactions
• Aggregation program for multifamily "conduit" type transactions
• Rehabilitation program for moderately priced rental units

Information is available on other Fannie Mae programs upon request.