CARH 2015Developing Best Developing Best Debt Strategy in Debt Strategy in Unpredictable Unpredictable

MarketMarketBonneville MultiFamily

Program comparison• USDA 538

• 25 term 40 amort

• Rate 4.00% + .5 = 4.50%

• 1.15 DSC – all hard debt

• 90% LTV – 70% LTC

• .9 + 1% w/min - Fees

• Carve out recourse only

• Location – only rural

• Min loan $400,000

• Phasing - yes

Fannie Mae/Freddie

15/30 – 18/30

4.95%

Same

90%LTV – no restriction on LTC

1% - 25K min –Fees

Same

Penalty for small pop

$1MM

Hard to phase

Bonneville MultiFamily

USDA 538 const/perm

25 term 40 amort

Rate 4.45% + .5 = 4.95%

1.15 DSC – all hard debt

90% LTV – 70% LTC

Convenants - yes

.9 + 1% w/min - Fees

Carve out recourse only

Location – only rural

Min loan $400,000

Phasing - yes

• FHA 221d4 const/perm

• 15 – 40

• 4.10% +.45 = 4.55

• 1.11 – 1.15

• 87% LTC (no LTV parameter)

• NO

• 2.7%

• Same

• Bias against small pop

• $3MM

• yes

• USDA 538

• 25 term 40 amort

• Rate 4.00% + .5 = 4.50%

• 1.15 DSC – all hard debt

• 90% LTV – 70% LTC

• .9 + 1% w/min - Fees

• Carve out recourse only

• Location – only rural

• Min loan $400,000

• Phasing - yes

Community Bank Financing

Bank (A) Bank (B)

20/20 5/15

5.5% 4.5%

1.15 1.15

80% 80%

.25 – .5% .25 - .5%

non recourse non

Foot print foot print

250k – 5MM 250K – 5M