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 |