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CARH 2015 Developing Best Debt Strategy in Unpredictable Market

Learn about the optimal debt strategy for Bonneville MultiFamily projects under the USDA 538 program, offering competitive rates, favorable terms, and tailored solutions for rural locations. Contact us for expert guidance.

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CARH 2015 Developing Best Debt Strategy in Unpredictable Market

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  1. CARH 2015Developing Best Debt Strategy in Unpredictable Market Bonneville MultiFamily

  2. 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 Program comparison Bonneville MultiFamily

  3. 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 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

  4. 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 • 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

  5. IN ANY EVENT CALL: • Craig Hackett, • Rob Hall or • Chris Mullen • At Bonneville Multi-Family Capital • 12 years ago closed “the first tax credit deal in the USA” with the 538 program • Closed 284 loans with 538 USDA program and tax credits. • Dedicated processing, construction and servicing staff

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