Description
Long term, fixed rate financing for the purchase or refinance of apartment buildings, mobile home parks and cooperative properties
Loan Amount
$3,000,000 and up
Loan Terms
Fixed rates for 5, 7, 10, 12, 15, 20 and 30 years
Amortization
Up to 30 years, based on property condition; Interest-only financing is available
Loan to Value Maximum
Up to 80%
Coverage Minimum
Typically 1.25x, 1.20x in certain markets
Borrower
Domestic single asset borrowing entity is required
Interest Rate
Subject to “tiered” LTV ratio (55%, 65%, and 80% tiers)
Prepayment Terms
Yield maintenance and step-down prepayment options available
Third Party Reports
MAI Appraisal, Physical Needs Assessment, and Environmental Phase I Assessment are required, plus Seismic Report may be required for properties in Seismic Zones 3 and 4
Escrows
Real estate taxes, insurance, and replacement reserves subject to underwriting guidelines
Application Fee
$10,000; covers 3rd party reports and processing/underwriting costs
Legal Fees
$8,000 to $12,000 varying with characteristics of the deal
Timing
45-60 days from application to closing; dependent on 3rd party report timing and borrower’s submission of due diligence
Rate Lock
Typically, lock occurs after commitment is issued; Early Rate Lock option is available, allowing rate lock within 3-4 weeks of application
Assumability
Loan is assumable, subject to lender approval.