Commercial Criteria
Loan Amount | $1 – $6 million; (between $6 million and $7.5 million for properties with 75 units or less in Top and Standard SBL Markets) |
Term | Fixed rate loans: 5, 7 or 10 years Hybrid ARM: 20 years with initial 5, 7 or 10 year fixed-rate period |
Loan-to-value (LTV) | 80% in Top and Standard Markets 75% Acquisition / 70% Refinance in Small & Very Small Markets |
Loan Type | Fixed rate or Hybrid ARM |
Purpose | Acquisition or Refinancing (cash out available) |
Pricing | Tiered Pricing Matrix based on Market, DSCR and LTV |
Rate Hold | 35 business day complementary rate hold |
Minimum DSCR | 1.20x – Top Markets 1.25x – Standard Markets 1.30x – Small Markets 1.40x – Very Small Markets |
Amortization | Up to 30 years (interest rate options also available) |
Prepayment | Declining schedules and yield maintenance available for all loan types. |
Recourse | Typically non-recourse except for certain standard carve-outs |
Eligible Borrower | Up to $6 million – Individuals who are U.S. citizens; LPs; LLCs; SAEs; SPEs; TICs with up to 5 unrelated members; and trusts (irrevocable trusts and revocable trusts with warm body guarantor). Between $6 million and $7.5 million – Single Asset Entities. Foreign National Guarantors are eligible. |
Property Types / Geography | Multifamily with minimum five residential units / Nationwide |
Commercial Space | Allowed up to 40% of total net rental income; no more than 40% of building’s square footage. |
Occupancy Requirement | 90% physical occupancy over the trailing 3 month period (85% occupancy may be acceptable in certain situations) |
Escrows | Real Estate tax escrow deferred for deals with 65% LTV or less. Insurance escrow deferred. Replacement reserve escrow deferred. |
Top Market (MSAs) | New York, Northern NJ, Long Island, Boston, Washington DC, Chicago, Los Angeles, Orange County, San Diego, San Francisco, San Jose, Denver, Miami/Ft Lauderdale, Minneapolis, Portland, and Seattle. |