Interest Rates
MHP Interest Rates
Last Updated 01/05/2009
Below are MHP's current interest rates, as of the date shown above. You will see rates for three types of loans - 20-year permanent loans, 5-year "mini-perm" loans, and 20-year tax-exempt bond-financed loans with triple-A credit enhancement. All rates are based on 30-year amortization schedules. They are subject to change daily, based on market conditions and characteristics of the transaction.
These interest rates are updated weekly. If you would like to receive monthly updates on MHP interest rates and lending news, please email us, and give us your email address.
PERMANENT RENTAL FINANCING:
For 20-year debt, rates range between 5.37% and 6.07%
For 5-year debt, rates range between 4.39% and 5.22%
Specific rates for different loan sizes are shown below. All rates assume a 30-year amortization schedule.
| 20-year term, 30-year amortization | |
| Sample loan amounts: | All-in rate |
|---|---|
| $1,000,000 | 6.07% |
| $3,000,000 | 5.87% |
| $7,500,000 | 5.52% |
| $10,000,000 | 5.47% |
| $15,000,000 | 5.37% |
| 5-year term, 30-year amortization | |
| Sample loan amounts: | All-in rate |
|---|---|
| $1,000,000 | 5.22% |
| $3,000,000 | 4.97% |
| $7,500,000 | 4.57% |
| $10,000,000 | 4.44% |
| $15,000,000 | 4.39% |
TAX-EXEMPT FINANCING:
For 20-year tax-exempt debt, rates range between 4.32% and 5.02%
| 20-year term, 30-year amortization | |
| Sample loan amounts: | All-in rate |
|---|---|
| $1,000,000 | 5.02% |
| $3,000,000 | 4.82% |
| $7,500,000 | 4.47% |
| $10,000,000 | 4.42% |
| $15,000,000 | 4.32% |
These rates reflect a 20-year fixed interest rate and 30-year amortization schedule provided through an interest rate swap which converts floating-rate bonds to a fixed rate. These bonds carry triple-A credit enhancement - the highest-quality credit enhancement available - minimizing the risk for the bond holder and thus providing the lowest interest rate available in the bond market. Minimum affordability is 20 percent of the units affordable to households at 50 percent of area median income.
NOTES:
- MHP's financing requires that a portion of the units be priced at affordable rents. For an explanation of these requirements, please review MHP's financing term sheets, which can be found here.
- The rates above assume no forward rate lock period. If you are seeking a loan with a forward rate commitment, add 3.1 basis points for every month of forward ratelock needed
- For the permanent 20-year loans, community development corporations may be eligible for rates lower than those quoted above
