Affordable Housing Preservation

Offering long-term financing or refinancing solutions for stabilized rental properties with rent and income restrictions.

Term Sheet (PDF)


  • Flexible underwriting to specific affordable developments
  • Competitive pricing
  • Flexible loan terms, and fixed- or variable-rate financing options
  • Certainty and speed of execution


  • Expiring Low-Income Housing Tax Credit deals
  • Refinancing of existing tax-exempt bond deals
  • Properties eligible for the Rental Assistance Demonstration (RAD) program
  • Properties with HUD Section 8 HAP Contracts
  • Properties with existing Rural Housing Service (RHS) Section 515 loans
  • Loans insured under Sections 202 or 236 of the National Housing Act


5 - 30 years.


Up to 35 years.

Interest Rate

Fixed- and variable-rate options available.

Maximum LTV


Minimum DSCR

1.20x (fixed-rate).

Property Considerations

Low-income qualifying restrictions required and must be recorded:

  • 20% or more units rented to families earning at or below 50% of Area Median Income (AMI);
  • 40% or more units rented to families earning at or below 60% of AMI; or
  • Project-Based Housing Assistance Payments contract (Section 8) covering 20% or more units.

Supplemental Financing

Supplemental Loans are available.

Prepayment Availability

Flexible prepayment options available, including yield maintenance and declining prepayment premium.

Rate Lock

30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.


30/360 and Actual/360.

Third-Party Subordinate Financing

Hard subordinate debt (which requires scheduled repayment of principal) is permitted only if provided by a public, quasi-public, or not-for-profit lender and combined debt service coverage cannot fall below 1.05x. Soft subordinate debt is permitted subject to requirements which include capping payments at 75% of available Property cash flow after payment of senior liens and Property operating expenses.


Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.


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.


Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.

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