Freddie Mac’s Capped ARM*
provides adjustable rate financing for the acquisition, refinance, and moderate
rehabilitation of multifamily properties and is ideal for borrowers who expect a
decrease in rates or those who want the flexibility of a short-term loan.
The Capped ARM provides time and cost
savings with Freddie Mac’s built-in interest rate cap while offering
competitive, market-driven pricing that provides the lowest rates and spreads to
the highest quality loans. The Capped ARM also provides flexibility in a broad
range of loan terms: 5 to 30 year terms, up to 30 year amortization,
supplemental mortgages on an adjustable or fixed rate basis, and the option of
converting to a fixed rate with limited underwriting at conversion.
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.
*Available in CA, HI, NJ , NY and
southern CT. Geographic waivers are available on a case-by-case basis. Contact
your loan representative for more information.
Product Overview
Eligibility Garden, mid and high-rise apartments, co-ops and senior housing properties
Loan Amounts
$3 million minimum. $100 million maximum.
Term/Amortization 3 to 10 year terms
Up to 30 year amortization available
Interest Only is availabe on a case-by-case basis.
Interest Rate
Floating based on 1 or 3 month LIBOR
Personal Recourse None, except for typical lender "Carve-Outs"
Debt Service Coverage 1.25x minimum
Loan to Value 80% maximum (7+ year terms)
75% maximum (less than 7 year terms)
Interest Rate Cap Included in rate
Prepayment 1 year lockout with 1% for the loan term or a declining prepay schedule
Origination Fee Required (varies by loan amount)
Commitment Fee Required (refundable)
Third Party Fees Required (varies by loan amount)
Minimum Occupancy Requirement
85% for 90 days prior to loan closing
Replacement Reserve Impounds Typically required
Supplemental Mortgages One per year on qualifying
properties
Available only in select regions. Contact us to find out if your property qualifies.