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Discounted Mortgage Backed Security (DMBS) Loan Financing


loan products:

fannie mae
Fixed Rate
ARM
DMBS
Tax-Exempt Bond Credit
 Enhancement

Small Mortgage
Seniors
Student
MHC
Structured ARM
DUS PLUS
Unfunded Forward Rate Lock Commitment
Custom Loan Options

freddie mac
Fixed Rate
Float-to-Fixed-to-Float
Capped ARM
High-Leverage
Lease-Up Executions
Tax-Exempt Bond Credit Enhancement
Interest Only

capital markets
Multifamily
Retail
Office
Hotel
Industrial

additional information
interest rate calculation
prepayment options
supplemental mortgages
Fannie Mae Discount Mortgage Backed Security (DMBS)

For most multifamily property types
Product Overview

Eligibility
Most multifamily property types

Loan Amounts
Single asset loans of at least $25 million or multiple asset transactions of at least $25 million delivered within a 12 month period.

Term/Amortization
5, 7, and 10 year terms
Up to 30 year amortization
Interest Only available but subject to restrictions

Interest Rates
Variable rate mimics 90 day LIBOR at a much lower cost than the conventional Fannie Mae ARM.

Interest Rate Cap
Interest rate cap must be purchased separately prior to rate lock and closing.

Debt Service Coverage Ratio
1.00x minimum at the underwriting ceiling

Loan to Value 
75% maximum

Conversion
May convert to 7 or 10 year fixed rate at any DMBS rollover date with a nominal fee

Personal Recourse
Non-recourse with standard “Carve-Outs” and Key Principal obligations

Prepayment   Click for more information
Fee maintenance, 1% prepayment premium after 1 year lock-out (on certain pricing categories)

Origination Fee
1% or less when applicable

Third Party Fees
Includes legal, appraisal, engineering, and environmental reports. Seismic reports and survey may also be required.

Replacement Reserve Impounds
Required - not less than $150/unit
(waiver considered for special circumstances)

Taxes and Insurance Impounds
Required. Waiver considered for low leverage transactions.

Assumability
Assumable with lender approval and a 1% fee

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