Multifamily-Structures containing five or more dwelling units with common area facilities such as entrances, lobby, elevators, stairs, mechanical space, walks or grounds. Units must be rented on a non-transient basis such that tenants consider their unit their permanent residence.
Mixed Use- Mixed-use properties must contain at least one commercial unit (retail, office etc.) and at least one residential unit. Common types of mixed-use properties include a ground floor retail or office unit with apartment(s) above, all within the same building.
$150,000 - $2,000,000
15, 20, 25 Years
First position mortgage as certified by title search and title insurance policy on property. Collateral assignment required; subordination of tenant leases may be required.
Determined by pricing matrix.
Debt Service Coverage Ratio:
Minimum DSCR of 1:1 depending upon property type, age, physical condition, location, and competitive market position.
Up to 80% of MAI appraised value conforming to FIRREA (580 plus minimum FICO).
Borrower must justify proceeds to be used for business purposes only. Minimum 2 years ownership; maximum LTV 80 to 90%.
The borrower may be required to contribute monthly to an escrow account for real estate taxes and property insurance. The borrower may also be
required to establish a monthly capital replacement escrow reserve equal to the
greater of (a) 5% of gross revenues or (b) an amount to be determined on the basis of an engineering report and site inspection.
Complete Summary Appraisal required on most property types and all loans greater than $500,000; Residential USPAP Form 71B may be used on select Tier I properties.
Environmental Insurance/Screen or Phase 1:
May be required.
No survey required if title company agrees to delete the standard exceptions from the title policy.
The borrower shall establish a remediation/repair reserve at closing equal to 125% of required deferred maintenance repairs as indicated in the environmental and architectural/engineering reports.
U.S. citizens, permanent resident aliens, non-permanent resident aliens (with restrictions); majority principal owners cannot be on probation or parole.
Must be personally guaranteed by all 20% or greater owners of real estate or operating entity.