Unfunded Forward Commitment for 9% LIHTC Properties

An unfunded forward commitment to issue an MBS upon completion of construction and conversion to a permanent Mortgage Loan for Multifamily Affordable Properties using 9% LIHTC.

Term Sheet (PDF)


  • Protection from interest rate volatility by locking the interest rate and other key provisions prior to construction
  • Single asset security allows for customized loan structures
  • Certainty and speed of execution
  • MTEB execution offers optional reimbursement of certain costs of issuance up to 75bps


  • LIHTC new construction and Properties undergoing substantial rehabilitation, including preservation and rural transactions
  • Lenders approved to deliver forward commitments under Fannie Mae’s Multifamily Affordable Housing product line

Interest Rate 

Fixed Rate.

Good Faith Deposit  

1% of the amount of the Forward Commitment, due at issuance of the Forward Commitment, and refundable upon conversion to the permanent Mortgage Loan.

Forward Rate Lock   

24-to-36-month commitments.  One delegated six-month extension available.

Forward Commitment Standby Fee             

10 bps paid upfront prior to Rate Lock.

Conversion to Permanent Mortgage Loan   

The permanent Mortgage Loan will close upon project completion and the issuance of certificates of occupancy for all units and at least 90% occupancy for 90 consecutive days. The permanent Mortgage Loan must meet Fannie Mae’s underwriting requirements.

Additional Considerations  

Second Lien Delivery Assurance Note and Security Instrument are necessary if required by Fannie Mae or the Bond Investor.


10 to 30 years.

Delivery Tolerance   

The original principal amount of the permanent Mortgage Loan must not be (i) greater than 105%, or (ii) less than 90% of the amount of the Unfunded Forward Commitment.


Up to 35 years.

Maximum LTV             


Minimum DSCR