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DSCR - FLEX PERM PROGRAM
| Property Type | Max LTV | Loan Limits |
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80% | $100k - $2MM+
Min DSCR 1.15x |
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80% | $100k - $2MM+
Min DSCR 0.75x |
 |
80% | $100k - $2MM+
Min DSCR 0.75x |
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75% | $100k - $2MM+
Min DSCR 1.15x |
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75% | $100k - $2MM+
Min DSCR 1.15x |
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75% | $100k - $2MM+
Min DSCR 1.15x |
PURPROSE FLEX PERM Loans are recommended for borrowers intending to hold the property for THREE or more years before selling or refinancing. These loans have less strict underwriting guidelines than institutional-grade conforming loans, offering competitive market rates for qualified properties and borrowers that just miss conforming guidelines.
RECOURSE Usually Recourse
PREPAYMENT PENALTY All FLEX PERM Loans have a prepayment penalty, usually step-down starting at 5%, decreasing 1% per year, or 5% for 5-years.
LOAN LIMITS FLEX PERM Loans are available for 1st mortgages starting at $100k up to $2MM.
CLOSING 30 to 45 Days
RESERVES 6 to 9-months mortgage reserves are required.
NET WORTH A strong schedule of real estate owned is important but not required.
LOAN TERMS & AMORTIZATION
Multifamily 5+ Units: 5 & 30-year terms. 30-year amortization.
1 to 4 Units Residential: 30-year term. 30-year amortization.
Office: 5 and 30-year fixed terms. 30-year amortization. Retail: 5 and 30-year fixed terms. 30-year amortization.
Industrial / Warehouse: 5 and 30-year fixed terms. 30-year amortization.
Residential Portfolio Loan: 30-year fixed terms for portfolios with 5+ properties. 30-year amortization.
FULL-TERM vs HYRBID
Loans can be structured as full-term or hybrid. Full-term loans are fixed for the entire 30-year loan term, amortize over the life of the loan, and are paid in full upon loan maturity at the end of the 30-year term. Hybrid loans have a fixed-rate for the initial 5-year fixed term, then adjust semi-annually through the remaining 25-years of the 30-year loan term.
Full-Term Benefits: Higher rate but provides the most security. Loan is fixed for the entire loan term.
Hybrid Benefits: Lower rate than a full-term loan. Borrower has the benefit of a lower fixed-rate loan during the initial term, can ride the adjusting rate after the initial fixed-term through loan maturity, or sell/refinance.
CREDIT SCORE REQUIREMENTS
650+
OPERATING INCOME - SEASONING Approval and interest rates are primarily based upon the net operating income of the property and LTV. The property must show it has been operating at a net operating income over the last 3-months to support the DSCR at the proposed market interest rate on commercial and multifamily properties. There is no occupancy requirement for 1 to 4-unit rental properties.