Multifamily Refinance or Acquisition
Refinancing of existing Multifamily (minimum 5 units) structures that have at least one full month of Debt Service Coverage Ratio being 1.15 for a market rate property, 1.11 for an affordable property or for a broadly affordable property. The property must have this consecutive coverage for at least 3-months prior to loan endorsement.
Eligible for up to 25% of total net rentable area and 20% of EGI.
Single asset and single purpose entity, either for-profit or non-profit.
The lesser of:
a) Applicable percentage of LTV.
b) Applicable debt service coverage ratio.
c) 87% of transaction costs, if purchase transaction.
d) HUD statutory limits.
e) Greater of 100% of transaction costs or 80% LTV if refinance cash out transaction.
f) For market rate properties, applicable factors: 87% LTV, 1.15 DSCR.
g) For affordable and broadly affordable properties: 90% LTV, 1.11 DSCR.
h) For Manufactured Home Community Program: 90% LTV Maximum, 1.11 DSCR, No Cash Out
* If built and occupied for 3-years or more, the Property must have a stabilized average physical occupancy of 85%. If less than 3-years of age,
the property must have at least 1-month physical occupancy of not less than 85% with at least 60-days of this same occupancy prior to
Endorsement.
* 50% of cash out funded at closing; remainder upon completion of non-critical repairs.
* Other parameters apply to mortgage over $120 million.
* Other than the above constraints, there are no minimum or maximum loan sizes.
A maximum term of the lesser of: 35 years fully amortizing or 75% of remaining economic life.
Fixed rate determined by market conditions at the time of rate lock.
1% payable at closing, 0.60% (0.35% for affordable and 0.25% for broadly affordable) annually or 0.25% for Green MIP, escrowed monthly. Subject to change by HUD.
Non-recourse.
Fully assumable, subject to HUD approval.
Negotiable. Best rates typically have 1-2 year lockout with declining prepayment penalty for remainder of first 10 years.
Typically Appraisal, PCNA, and Phase I ESA. Other reports as needed.
Escrows for taxes, insurance and mortgage insurance premium are required.
Initial and monthly deposits required based on long term physical needs.
Cash or a letter of credit for up to 20% of the estimated cost of repairs.
$3 per $1,000 of requested mortgage.
Greater of 1% of the cost of repairs or $30 per unit ($1,500 max if repairs are less than $100k).
Typically 0.5% of mortgage amount, refunded at closing.
Refinancing of existing Multifamily (minimum 5 units) structures that have at least one full month of Debt Service Coverage Ratio being 1.15 for a market rate property, 1.11 for an affordable property or for a broadly affordable property. The property must have this consecutive coverage for at least 3-months prior to loan endorsement.
Eligible for up to 25% of total net rentable area and 20% of EGI.
Single asset and single purpose entity, either for-profit or non-profit.
The lesser of:
a) Applicable percentage of LTV.
b) Applicable debt service coverage ratio.
c) 87% of transaction costs, if purchase transaction.
d) HUD statutory limits.
e) Greater of 100% of transaction costs or 80% LTV if refinance cash out transaction.
f) For market rate properties, applicable factors: 87% LTV, 1.15 DSCR.
g) For affordable and broadly affordable properties: 90% LTV, 1.11 DSCR.
h) For Manufactured Home Community Program: 90% LTV Maximum, 1.11 DSCR, No Cash Out
* If built and occupied for 3-years or more, the Property must have a stabilized average physical occupancy of 85%. If less than 3-years of age,
the property must have at least 1-month physical occupancy of not less than 85% with at least 60-days of this same occupancy prior to
Endorsement.
* 50% of cash out funded at closing; remainder upon completion of non-critical repairs.
* Other parameters apply to mortgage over $120 million.
* Other than the above constraints, there are no minimum or maximum loan sizes.
A maximum term of the lesser of: 35 years fully amortizing or 75% of remaining economic life.
Fixed rate determined by market conditions at the time of rate lock.
1% payable at closing, 0.60% (0.35% for affordable and 0.25% for broadly affordable) annually or 0.25% for Green MIP, escrowed monthly. Subject to change by HUD.
Non-recourse.
Fully assumable, subject to HUD approval.
Negotiable. Best rates typically have 1-2 year lockout with declining prepayment penalty for remainder of first 10 years.
Typically Appraisal, PCNA, and Phase I ESA. Other reports as needed.
Escrows for taxes, insurance and mortgage insurance premium are required.
Initial and monthly deposits required based on long term physical needs.
Cash or a letter of credit for up to 20% of the estimated cost of repairs.
$3 per $1,000 of requested mortgage.
Greater of 1% of the cost of repairs or $30 per unit ($1,500 max if repairs are less than $100k).
Typically 0.5% of mortgage amount, refunded at closing.
