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Financing Program for Multi-Family Properties

Loan Amount:$750,000 and larger
Spreads:200 to 300 basis points over corresponding index
Index:Typically, US treasury (other indexes may be used on a case by case basis)
Loan Term:5, 7 or 10 years
Amortization:Up to 30 years
Prepayment:Typically a lock out period followed by a yield maintenance formula or defeasance option
Recourse:Non-recourse, except for standard lender carveouts
Borrower:All properties must be owned by a single asset or single purpose entity
Debt Service Coverage:Minimum 125% (may be higher in certain markets)
Loan to Value:Up to 80% of appraised value (65% to 75% in some markets)
Occupancy:Properties must be 85% physically occupied at loan funding and for the 90 day period prior to commitment
Assumability:Yes, one time right subject to lender approval and the payment of a processing fee and a 1% assumption fee
Reserves:Tax and insurance escrows are required.  Replacement reserves and repairs required as determined by the engineer’s report.
Loan Costs:The borrower is responsible for all legal and third party expenses.
Closing:45 to 60 days after acceptance of the application and deposit
Underwriting Requirement:All final submissions must include an Argus Valuation-DCF data file.  If you have not modeled your submitted project in Argus Valuation-DCF, you must engage us or a third party to model your project.  However, on a preliminary basis, please feel free to submit your proforma in any format.