loan amounts
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3-Max - $750,000 to
$3,000,000 (Up to $5MM in the following MSA's:
Baltimore, Washington DC, Boston, Chicago, New York City,
Los Angeles, Riverside (CA), Sacramento, San Diego, San
Francisco, San Jose (CA), and Seattle)
Standard - $2,000,000 to
$50,000,000
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eligible property types
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Multifamily properties with 5+ units; Low-rise, garden
style, townhouse, mid-rise, high-rise, detached / contiguous
or attached complexes with five or more units, student
housing, Section 8 subsidy; Affordable Housing (HAP)
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ineligible property types
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Properties under construction or non-stabilized; flips
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loan terms
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Fixed Rate Terms: 5, 7,
10 yrs; Amortization 25-30 yrs
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max ltv
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80% in most markets; 75% in smaller/tertiary markets
CLTV - no seller or subordinate financing allowed
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min dscr
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1.20x
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min occupancy
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Typically 90% for the previous three months
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prepayment penalties
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Step-Down or Yield Maintenance
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recourse
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Loan amounts at or above $750,000 in the following MSA's are
eligible for Non-Recourse: Baltimore, Boston, Chicago,
Sacramento, San Diego, Los Angeles, Riverside (CA), New York
City, Portland (OR), Salt Lake City, San Francisco, Seattle,
and Washington DC.
Generally, Tier 3 (1.35x DSCR minimum / 65% LTV maximum) and
Tier 4 (1.55x DSCR minimum / 55% LTV maximum) loans do not
require guaranty, regardless of market.
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rate lock
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60-day rate lock available
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tax & insurance escrows
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Typically not required
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assumability
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Loans are typically assumable subject to lender approval;
subject to a 1.0% assumption fee
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msa / markets
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Nationwide. MSA requirements are typically 50,000 population
within a 25 mile radius
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borrower characteristics
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Net worth: typically equal to
or greater than the loan amount
Liquidity: 3-6 months
post-closing liquidity (including 1031 accommodator acct)
No bankruptcy or foreclosure history allowed
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min. fico
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Typically 680 or above; lower scores may be acceptable
based on mitigants
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replacement reserves
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Typically $250-350/unit (underwritten, not collected)
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total expenses
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Generally underwritten to a minimum of $2,750/unit total
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