August 18, 2022
BluePoint arranged the acquisition financing for a 250-unit apartment complex that is subject to an affordability contract. We used a bank execution to provide a lower rate and better terms than the borrowers’ typical Fannie Mae and Freddie Mac lenders could offer. In addition to a lower rate, the loan had the advantages of allowing for a full rate lock at application, a more favorable prepayment, and lower costs and no legal fees. In addition, the loan was non-recourse and included a 7-year interest only period. The full rate lock at application is something that we advise borrowers not to overlook on any loan in this current environment, as we see too high a risk to merit using an agency loan or any other loan that cannot be rate locked from the start.
- Property Type: Multifamily – Affordable Housing
- Loan Type: Acquisition
- Rate: 4.35% / 7 years Fixed
- Interest Only: 7 Years
- Term: 30 Years
- Prepayment Penalty: Step down
- Recourse: Non-Recourse
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