Multifamily Small Loans Criteria

Loan Amount
$1,000,000 minimum – $3,000,000 (or $5,000,000 in major MSAs) maximum

Loan Term
Up to 30 Years

Amortization
Up to 30 Years

Minimum DSC
1.25

Maximum LTV
80%

Fixed Rate
Yes

Adjustable Rate
Available. Priced off the one-month or three-month LIBOR.  Convertible and non-convertible options available

Eligible Property
Multifamily, minimum five units

Occupancy Requirement
90% physical occupancy

Tax and Insurance Escrows
Monthly deposits required.

Replacement Reserves
Underwritten at a minimum $200 per unit per annum

Recourse
Non-recourse available in certain markets.

Required Reports
Appraisal, Reduced Physical Needs
Assessment and Environmental Screen

Prepayment
Yield Maintenance. 5-4-3-2-1 available for ARM only

Pricing
Tiered Pricing Matrix.  More favorable terms available for higher DSC and lower LTV

Application Deposit
$4,500. Covers underwriting costs (including processing fee and site inspection)

Origination Fee
Minimum 1%. Par pricing available

Good Faith Deposit-Taken at time of loan commitment and refunded at closing
2% of loan amount
1% of loan amount for certain transactions of $3 million or less with commitment periods of 45 days or less

Contact us to see if your apartment complex transaction qualifies for financing.

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2 thoughts on “Multifamily Small Loans Criteria

  1. Pingback: Multifamily Financing Tips « Commercial Finance

  2. Pingback: Financing Apartment Buildings « Commercial Finance

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