Eligible Properties

Existing Multifamily (5 unit) structures at least 3 years old

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Borrower

Single asset and single purpose entity, either for-profit or non-profit

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Recourse

Fully non-recourse

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Loan Amount

No limits

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Maximum Mortgage Limits

• For a purchase transaction, the lesser of:
• 83.3% LTV
• 100% transaction costs (refinance); 85% transaction costs (purchase)
• 1.20 DSCR
• HUD statutory limits
• 80% LTV cash out refinance available

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Interest Rate

Fixed rate determined by market conditions at the time of rate lock

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Amortization & Term

A maximum of 35 years fully amortizing

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Mortgage Insurance Premium

1% payable at closing, .60% annually

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Escrows

Escrows for taxes, insurance and mortgage insurance premium are required

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Replacement Reserves

Initial and monthly deposits required based on long term physical needs

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Repair Escrow

Cash or a letter of credit for up to 20% of the estimated cost of repairs

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Secondary Financing

Permitted up to 100% LTV under certain conditions

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Commercial Space

Eligible for up to 20% of total square footage and 20% EGI

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Origination Fee

Fees Negotiable

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Placement Fee

Fees Negotiable

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HUD Exam Fee

$3 per $1,000 of requested mortgage

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HUD Inspection Fee

1% of the estimated cost of repairs or $30 per unit

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Rate Lock Deposit

Typically 1/2% of mortgage amount, refunded at closing

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Application Fee

$5,000

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Third Party Expense Deposit

Estimated at $22,500 for appraisal, PCNA, Phase 1, Accountant's Report

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Legal Fees

Lender legal fees estimated at $12,500

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Assumability

Fully assumable

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HUD Review Time

60 Days

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1) Property must have an average physical occupancy of 85% for six months prior to submission of application to HUD.

2) 50% cash out funded at cash out; remainder upon completion of non-critical repairs.