April 7 edition
- DJIA up 22,789
- V-shaped recovery possible
- Stocks on track for 2-day win
- US Treasury opened at .77
- FHA 223(f) tightened 2.57%
- FHA 221(d)(4) still 3.30%
- Fannie 3.36%
- Freddie 3.44%
- Freddie requires fully amortizing DS Reserve
- 6-9 months regardless of due diligence
- Certain cases allow for 12 months and 18 months for specialty (like student housing)
- FNMA on typical Tier 2 75-80% LTV, 1.25 DSCR for 12 months of P&I
- Consider spread between cap rates and 10yr UST Yields
- Average cap rate (5.75) – .72 = 5.03 spread
- Investors choose MF real estate over risk-free gov’t bonds
