Purchasing

Purchase and Rate Term: 

There are 14 different loan programs to choose from. The following are general terms.

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Property Type - Multifamily with 5 or more units:

Ineligible Property - No rehab, turnarounds or handyman specials

Transaction - Purchase, refinance rate-and-term

Ownership - Most entities, corporation, LLC, LLP or individuals

Credit - Borrower must have 680 FICO score or better

Loan - Amounts $500,000 and higher

Loan-to -Value - Purchase: 80% LTV. Refinance: No cast out 80%

Second Mortgage - Second mortgages not allowed

Amortization & Terms - Up to 30 years amortized. Initial fixed for a period of 3 years, 5years, 7 years, 10 years. At the end of initial fixed period loan converts to a 1 year adjustable using the 1-year LIBOR as the index plus margin.

Interest - Call for quote

Rate Lock - Depends on loan program selected

Escrow - Depends on loan program selected

Recourse - Depends on loan program selected

Seasoning - 90% occupied

Survey - Survey required if not otherwise satisfactory to Title Company

Inspection - Depends on loan program selected

Environmental - Depends on program selected

Title Insurance - ALTA lender's title insurance satisfactory to lender

Termite - Termite report satisfactory to lender. Infestation can be treated before closing or up to 60 days after with a 125% holdback.

Other Costs - The borrower will be responsible for paying all costs associated with the transaction including, but not limited to: appraisal, survey, title insurance, credit reports, property condition inspection, flood insurance and legal fees if required.

DSCR ( Debt Service Coverage Ratio) - 1.25:1. Determined by dividing actual NOI by Debt Service (PI). This is the minimum acceptable. Some loans will require higher DSCR..

NOI (Net Operating Income) - This is the net profit after all property related expenses have been paid excluding the debt service payment (mortgage PI payment).

Vacancy - Market

Management - Use greater of market or 5% of EGI as a management fee expense for underwriting

Replacement Reserves - As a minimum use 150-$200 per unit for any replacement reserve for underwriting. (Can be adjusted downward if operating statements show repairs and maintenance items).

Assumable - Qualifying assumptions with a 1% fee

Prepayment - Depends on loan program selected

Purchase and Rate Term: $5,000,000 and Above - No Cash Out

There are 25 different loan programs to pick from. The following are just general terms.


Property Type - Multifamily, office, office/warehouse, retail, mini-storage

Ineligible Property - No rehab, turnarounds or handyman specials

Transaction - Purchase, refinance rate-and-term

Ownership - Most entities, corporation, LLC, LLP or individuals

Credit - Borrower must have "A" credit (FICO of 650 or better)

Loan - Amounts $5,000,000, to $100,000,000

Loan-to-Value - Purchase: 80% LTV. Refinance: No cash out 80% LTV

Second Mortgage - Second mortgages not allowed

Amortization & Terms - Up to 30 years amortized. Initial fixed for a period of 5 years - 30 years.

Interest - Depends on loan program selected

Rate Lock - At time of submission (at time of registration for 90 days with deposit on1% - 2% of loan amount which will be credited at close)

Escrow - Depends on loan program selected

Recourse - No

Seasoning - Generally do not allow refinancing during the first 12 months of ownership

Appraisal - The appraiser must be state-licensed

Survey - Survey required if not otherwise satisfactory to Title Company

Inspection - Depends on loan program selected

Environmental - Phase I

Title Insurance - ALTA lender's title insurance satisfactory to lender

Termite - Termite report satisfactory to lender. Infestation can be treated before closing or up to 60 days after with a 125% holdback

Other Cost - The borrower will be responsible for paying all costs associated with the transaction including, but not limited to: appraisal, survey, title insurance, credit reports, property condition inspection, flood insurance and legal fees if required.

DSCR (Debt Service Coverage Ratio) - 1.20:1 Determined by dividing actual NOI by Debt Service )PI). This is the minimum acceptable. Some loans will require higher DSCR.

NOI (Net Operating Income) - This is the net profit after all property related expenses has been paid excluding the debt service payment (mortgage PI payment)

Vacancy - Market

Management - Use greater of, market or 5% of EGI as a management fee expense for underwriting

Replacement Reserves - As a minimum use $150-200 per unit for any replacement reserve for underwriting. (Can be adjusted downward if operating statements show repairs and maintenance items).

Assumable - Qualifying assumptions with a 1% fee

Pre-payment Penalty - Depends on loan program selected.