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Adjustable Rate 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 ARM

For standard multifamily property types
Product Overview

Eligibility
All conventional multifamily property types.

Loan Amounts
$1.5 million minimum. No maximum.

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

Interest Rates
Floating based on 1 or 3 month LIBOR

Debt Service Coverage Ratio
1.0x minimum at the cap rate as determined by the borrower

Loan to Value
80% maximum

Interest Rate Cap Choices
300 to 600 basis points available in 50 basis point increments

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

Conversion Option
Can convert to a 7 or 10 year fixed rate in months 13-60 of the ARM loan with a nominal fee

Prepayment   Click for more information
1 year lockout with 1% prepay premium for the loan term or a declining prepay schedule

Origination Fee
1% or less when applicable. $20,000 minimum.

Commitment Fee
2% (refundable)

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

Supplemental Mortgages   Click for more information
Available after 1 year. Up to 2 available, plus 1 more upon sale and assumption. $500,000 minimum.

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