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Multi-Family – Loan Underwriting Guidelines

Please incorporate the below minimum guidelines when you prepare and submit your proforma for underwriting approval:

 Rental Income:Current rent roll annualized with vacant units calculated at market rents (supported by prior 12 months historical data)
(+)Other Income:Must be supported by historical collections
(-)Vacancy:Equal to the greater of the actual, market vacancy or 5% (include any rent concessions, employee rent and all non-revenue units)
(-)Management Fee:Equal to the greater of the actual management fee of 5%
(-)Operating Expenses:Should be supported by previous two (2) years and current year-to-date expenses
(-)Capital Reserves:Typically $250 per unit minimum depending upon property age and condition
 Equals:Net operating income