Fannie Mae Master Credit Facility
- Ultimate flexibility in portfolio management
- Allows opportunistic sale or release of properties
- Expansion feature allows easy addition of properties
- Recognize portfolio improvements with first lien borrow-ups
- Retain favorable interest rates with property substitutions
- Balance sheet management
- Pre-negotiated loan documents provide for certainty of execution and fast closings for facility expansions
- Flexible financing terms for a portfolio of properties on a cross-collateralized and cross-defaulted basis
- Property addition rights
- Property release rights
- Property substitution rights
- "Borrow-Up" capabilities
- Ladder maturities with multiple tranches of debt
- Eligible asset classes
- Student Housing
- Manufactured Housing
|Credit Facility Size||Minimum initial advance of $55 million with unlimited expansion capacity.|
|Term||15 year Credit Facility, with 5 -15 year loan terms, available for maturity laddering.|
|Interest Rate||Fixed, variable, or a combination thereof. Variable- rate advances may be converted to fixed rate.
An interest rate cap or other hedging arrangement is generally required for all variable-rate advances.
|Amortization||Interest-only and amortizing available, based upon property and pool performance.|
|Maximum LTV||Up to 80% depending upon asset class and product type.|
|Minimum DSCR||1.20x depending upon asset class and product type.|
|Structuring Options/Features||Single or multiple loans.
Single or multiple collateral pools.
No rebalancing required.
No unused capacity fees. All structuring options/features subject to the terms of the Master Credit Facility Agreement.
|Prepayment Availability||Flexible prepayment options available, including partially pre-payable debt, yield maintenance and declining prepayment premium.|
|Borrower Entity||A single purpose, bankruptcy-remote entity is required for each borrower and any general partner, managing member, or sole member that is an entity. Borrowers must have common sponsorship.|
|Rate Lock||30- to 180-day commitments. Borrowers may lock a rate with the Early Rate Lock option.|
|Recourse||Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.|
|Escrows||Replacement reserve, tax, and insurance escrows are typically required.|
|Third-Party Reports||Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.|
|Assumption||Assumption of the entire facility is permitted upon satisfaction of the requirements of the Master Credit Facility Agreement.|
|Fees||Fannie Mae charges the following fees: Structuring fee: 10 basis points on each advance. Due Diligence fee: $1500 per property. Other fees (e.g. substitution, release, assumption, and review) may apply.|
|Property Considerations||Financial and operating covenants and geographic diversity requirements determined on a case-by- case basis.|