Eligible Properties:
Construction, Take-out, Acquisition and Refinance of both garden-style and hi-rise buildings multifamily/condo properties are acceptable. We will consider phased properties if phases can stand on their own.

Will consider A, B & C properties in primary and secondary markets.

Commercial space is limited to 20% of the total net rentable area. Properties with greater than 20% student or military tenancy will be considered though they typically require higher coverage and reserves. The minimum acceptable occupancy is the greater of 90% or sustaining occupancy.

Eligible Property Locations:
Nationwide. Market areas with a stable current occupancy. Rent concessions will be underwritten cautiously and typically require higher coverage and reserves.

Loan Size:
$1Million - $50 Million; Will also consider larger portfolio transactions with suitable project economics and sponsorship.

Debt Service Coverage:
1.20 x minimum

Loan-to-Value Ratio:
Up to 80% for Fannie Mae DUS, Conduit and Life Company Programs, Up to 90% on FHA insured loan program.

Loan Term:
Permanent Financing Terms: 5, 7, 10, 15, 20, 30, and 35 years.

Construction Loan Terms: 12 – 36 months with extensions available for larger projects.

Amortization:
35 years or less depending on age, quality of construction and market location.

Tenancy:
Leases should be at least 6 months at initial occupancy of a tenant. Consider corporate-type, short-term leases at initial occupancy of a tenant. Consider corporate-type, short-term leases providing furniture and/or maid service on a case-case basis.

NOI Calculation:
Strongly prefer to receive three full years of operating history. Underwrite rental revenues based on last three monthly rent rolls and trailing 12-month history with adjustments where appropriate. Other income, if sustained, on trailing twelve months basis. Generally underwrite expenses based on last full fiscal year, plus a 3% inflation factor subject to industry averages.

Vacancy Factor - The greater of 5%, local market average or the actual property for the most recent 12-month period (including all forms of economic rent loss).

Management Fee - The greater of 5% effective gross income, the actual management contract fee rate, or the industry average.

Capital Reserves - Generally ranging from $150 to $250 per unit, based on the final engineering report, physical inspection, tenancy and age of property.

Time Frames:
Term Sheets within 48 hours, Commitments within 10 days of submitting Pre-Qual package, Closing within 60 days of commitment.

Fees:
Loan Fees: 1-3% of the loan amount.

Third party legal, environmental, appraisal and other fees will apply.

Small loan program limits all third party and lender fees to $15,000.