The LIBOR-based Adjustable
Rate Mortgage (ARM) Product provides flexible financing for borrowers seeking a
variable rate mortgage. The ARM will finance up to 80% of the property value for
terms of 5, 7 and 10 years. The ARM features a conversion option, a wide range
of interest rate caps, two prepayment options (1% or declining schedule), and
two index options (1 or 3 month LIBOR). supplemental mortgages are also
available on an adjustable or fixed rate basis.
PNC ARCS is one of America's leading
commercial lenders with an acknowledged expertise in multifamily finance and one
of America's leading Fannie Mae DUS™ lenders for more than a decade.
As a PNC Real Estate Finance Company,
PNC ARCS is part of PNC Financial Services, one of the largest diversified
financial services companies in America. Now PNC ARCS can provide access to debt
and equity financing, construction loans, permanent financing, forward
commitments, tax credits, direct bond purchase programs, mezz, bridge, Fannie
Mae, Freddie Mac, FHA and Capital Markets. One single source to meet our
borrowers' needs.
The company is now the single source for all real estate financing across the full range of commercial property types.
Beyond the benefits of any specific lending product, PNC ARCS' experience, expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. No one delivers more.
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 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 Available after 1 year. Up to 2 available, plus 1 more upon sale and assumption. $500,000 minimum.