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					                                       See notes and definitions below.                                                                                                                                                                                                                                                              March '12
                                                                                                                                                                                                      Rates /                  LTV /                            Term        Amort
    OPTION           TYPE                   EXPLANATION                                 REQUIREMENTS                               USUAL SOURCES                        AVAILABILITY                                                             Points                                                          COMMENTS
                                                                                                                                                                                                      Spreads                 Coverage                          (Yrs)       (Yrs)
                                                                                                                                                                                                                                                Usually                                -Seek top tier properties
                                                                                Creditworthy borrower and well-                                                                                    125-175 over          Typically up to
  INSURANCE                                                                                                                                                                                                                                   limited to a                             -Are more competitive with Fannie and Freddie
                       Debt          Longer term fixed rate loan.                maintained property of "B" or             Insurance companies, pension funds.                Excellent           comparable term             70%                               5-25        25-30
COMPANY LOAN                                                                                                                                                                                                                                   processing                              particularly on top tier properties
                                                                                         better quality.                                                                                             Treasury                 1.25

                                                                                                                                                                                                                                                                                       - Float-to-fix available. Unusual flexibility on portfolios
                                                                                                                                                                                                   170-220 over                                                                        and multiple transactions.
                                                                                 Experienced multifamily owner,            Fannie Mae DUS and Freddie Mac                                                                (75% with cash
AGENCY LOAN            Debt           Longer term fixed rate loan.                                                                                                            Excellent             comparable                                      1           5-30          30       -Floating rates available.
                                                                                  "A" to "C" quality property.                   Program Plus lenders.                                                                       out)
                                                                                                                                                                                                     Treasury                                                                          -Some flexible prepay available for a spread premium.
                                                                                                                                                                                                                                                                                       -Are stress testing in underwriting.

                                                                                Creditworthy borrower and well-
                                                                                                                                                                                                   3.00-3.50 over             Up to 75%                                                Conduit lending has stalled due to weak reception of
CONDUIT LOAN           Debt           Longer term fixed rate loan.               maintained property of "B" or                       Investment Banks                           Good
                                                                                                                                                                                                      SWAPS                     1.20
                                                                                                                                                                                                                                                    0            10           30
                                                                                                                                                                                                                                                                                       mortgage backed bonds.
                                                                                         better quality.

                                                                                                                                                                                                                                                                                       -Often best for properties with large Sec. 8 component,
                                                                                                                                                                                                     140 over             Up to 83.3%          1 to 1.5 +
                                                                                   Reasonably well maintained                                                                                                                                                                          but there is no affordability requirement.
                                                                                                                                                                                                 10-yr. Treasury         (80% with cash       1 % MIP +
  FHA 223 (f)          Debt         Fixed rate fully amortizing loan.            property. Borrower with clean                       HUD mortgagees.                            Good
                                                                                                                                                                                                +45bps MIP for 35              out)              0.3 %
                                                                                                                                                                                                                                                                 35           35       -Useful for under-rented properties with modest fix up
                                                                                            credit.                                                                                                                                                                                    program.
                                                                                                                                                                                                    year term.              1.15-1.20         application
                                                                                                                                                                                                                                                                                       -Normally prepay at par after 10 yrs, sometimes earlier.

                                                                                                                                                                                                                                                                                       -Non-recourse fixed-rate construction-perm
                                                                                                                                                                                                  190 over 10 yr.                              1 to 2 +
                                                                                                                                                                                                                                                                                       combination with maximum proceeds.
                               Fixed rate construction + fully amortizing         Economically feasible project.                                                                                 Treasury + 45 bp         83.3% of cost       0.9 % MIP
 FHA 221 (d) 4         Debt                                                                                                          HUD mortgagees.                            Good                                                                             40           40       -No affordability requirements.
                                            permanent loan.                        Borrower with clean credit.                                                                                   MIP for 40 year              1.20             + 0.3 %
                                                                                                                                                                                                                                                                                       -Davis Bacon Wages required.
                                                                                                                                                                                                       term.                                  application
                                                                                                                                                                                                                                                                                       - Per unit maximum on loan proceeds.

 TAX-EXEMPT                                                                         Tax-exempt allocation,                Mostly municipal money market funds                                    SIFMA + 300-350                                                                       -Rate caps normally required. On "low floaters".
                                 Construction and long-term perm for                                                                                                                                                            80%+
   BONDS-              Debt                                                    economically feasible project, good        with a credit enhancement from banks               Adequate              Other indexes                                 2 to 4       15 to 30      30-40      -Borrower can use swaps to fix rate on some or all of
                                         affordable housing.                                                                                                                                                                     1.15
  VARIABLE                                                                               sponsorship.                                  and FHLMC.                                                 sometimes used.                                                                      the loan amount.

                                                                                                                         State housing finance agencies and bond                                Roughly equivalent
 TAX-EXEMPT                      Construction and long-term perm for                                                                                                                                                            80%+
                       Debt                                                               Same as above.                   funds. May use credit enhancement                 Adequate             to comparable                                  2 to 3         15-30       30-40      -Rates are roughly equivalent to taxable rates.
 BONDS-FIXED                             affordable housing.                                                                                                                                                                     1.15
                                                                                                                                 from FHA and FHLMC.                                            FHLB Rate +100.

                                                                                                                                                                                                                            Up to
 MEZZANINE/                                                               Experienced sponsor and feasible                                                                                                               80% - 90% of                                      Usually
                      Debt/     Junior financing secured by pledge of or                                                  Credit companies, opportunity funds,                                       9% - 12%
 PREFERRED            Equity      participation in ownership interest.
                                                                         plan to develop new project or add
                                                                                                                            and some insurance companies.
                                                                                                                                                                                                                             cost,               1 to 2        2 to 10     interest -Structures vary widely.
   EQUITY                                                                      value to existing asset.                                                                                                                 85% of stabilized                                    only
                                                                                                                                                                                                  equity 8% - 12%

                                       Equity source provides                    Experienced sponsor and "A" to
                      Debt/                                                                                                Pension funds, insurance companies,                                                                                                                         -J/V financing is increasingly available from top tier
JOINT VENTURE         Equity
                                90% - 95% of capital stack. May bring               "B+" quality property or
                                                                                                                              REITs and opportunity funds.
                                                                                                                                                                             Adequate                  Unclear                 Unclear           0 to 1        3 to 10       N/A
                                         in 3rd party debt.                              development.

                                Sale prior to the start of construction at                                                 Pension funds, insurance companies,                                                                                                                         -Available but rarely used given options that are more
  PRESALE             Equity                                                      "A" quality new development.                                                                 Limited                   N/A                                  Not Applicable
                                          predetermined price.                                                                           REITs.                                                                                                                                        appealing to developers.

  PRIVATE                                                                       Experienced sponsor and project
                                   Private capital seeking ownership                                                        Individual investors; usually pooled                                                                                                                       -This bucket of capital is becoming increasingly
  EQUITY /            Equity                                                     with attractive cash flow and                                                                  Good                Vary widely                               Not Applicable
                                    positions in leveraged projects.                                                      through a fund manager or syndicator.                                                                                                                        available.
SYNDICATION                                                                                 upside.
The terms shown herein approximate market conditions at the time of publication and are subject to frequent
                       DCR = Debt Coverage Ratio                                                              FHLMC = Freddie Mac                                                        IRR = Internal Rate of Return
                                                                                                                                                                                                                                                                               MIP =   Mortgage Insurance Premium
                                                                                                                                                                                                                                                                                 P=    Prime
                       DUS = Delegated Underwriter Servicer                                                    FNMA = Fannie Mae                                                      LIBOR = London Interbank Offered Rate
                                                                                                                                                                                                                                                                              REIT =   Real Estate Investment Trust
                       FHA = Federal Housing Administration                                                     HUD = Dept. of Housing and Urban Dev’t                                  LTV = Loan to Value Ratio
                                                                                                                                                                                                                                                                             SIFMA=    Securities Industry And Financial Markets Association
                    The terms shown herein approximate market conditions at the time of publication and are subject to frequent changes based on the shifts within capital markets. The format of this presentation is simplified to aid the reader in a global understanding of the complex financing options available for multi-family properties.
                    Therefore in cannot deal with the numerous intricacies of certain financing options. The edition deals solely with financing of apartments and is an abbreviated version of the Master Money Matrix - Overview. For information on construction loans, second mortgages, etc., the reader is referred to prior issues of the New
                    England Real Estate Journal which contain the most recent editions of the sister “Master Money Matrix - Overview.”

        Fantini Gorga 265 Franklin Street, Boston, MA 02110-3113 Ph: 617.951.2600 Fax: 617.951.9944 Visit us at


Fantini Gorga 265 Franklin Street, Boston, MA 02110-3113 Ph: 617.951.2600 Fax: 617.951.9944 Visit us at

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