Multifamily Conventional Loans

$7.5 million to $100 million

Competitive Financing for Multifamily Investors

 

 

 

 

 

MULTIFAMILY CONVENTIONAL FINANCING

With our fixed-rate structured loan, you get a flexible, streamlined financing solution and certainty of execution for the acquisition or refinance of multifamily housing properties. Borrowers have a variety of options to suit their individual needs. When it comes to multifamily finance, ICS gets it done. We work closely with Freddie Mac, Fannie Mae, life insurance companies, and numerous banks to tackle complicated transactions, provide certainty of execution and fund quickly.

 

PRODUCT SNAPSHOT

$7.5 Million to $100 Million

■ $7.5 million to $100 million+
■ Limited partnership, corporation, LLC, or tenancy in common
■ If $7.5 million+ borrower must be a Single Purpose Entity
■ Under $7.5 million, borrower may be a Single Asset Entity
■ Mixed-use properties ok

Loan Amount

$7.5 million - $100 million in all major markets*

Loan Purpose

Acquisition or refinance.

Loan Terms

■ 5- to 10-year terms (up to 30 years if loan is not purchased for securitization).

Amortization

30 years.

Lock-out Period

2 years following securitization.

Prepayment Penalties

Yield maintenance until securitized followed by 2-year lock out; defeasance thereafter. No prepayment premium for final 90 days. If loan is not securitized within first year, then yield maintenance applies until the final 90 days. Yield maintenance without defeasance is available for securitized loans at an additional cost.

Eligible Borrowers/Entities

Borrower may be a limited partnership, corporation, limited liability company, or a tenancy in common (TIC) with 10 or fewer tenants in common.
■ General partnerships, limited liability partnerships, REITs and certain trusts may also be acceptable in limited circumstances, subject to additional
requirements.
■ Borrower must usually be a Single Purpose Entity (SPE) (see Section 6.13 of the Loan Agreement for basic SPE requirements); however, on loans less than $5 million, upon borrower’s request, a borrower other than a TIC may be a Single Asset Entity instead of a SPE.
■ If the borrower is structured as a TIC, each tenant in common must be an SPE

Recourse

Non-recourse, with standard carveout provisions required.

Eligible Properties

Standard multifamily housing, student housing, seniors housing, manufactured housing communities, cooperative housing and Targeted Affordable Housing Cash (e.g., LIHTC Year 4-10 and 11-15, Section 8) Loans. Loans may be used for acquisition or refinance.

Escrows & Replacement Reserves

Generally required.

DSCR & LTV Minimums

Amortizing

▪5-year term - 1.3x & 75%
▪7-year term - 1.25x & 80%
▪10-year term - 1.25x & 80%

Partial Interest Only

▪5-year term - 1.3x & 75%
▪7-year term - 1.25x & 80%
▪10-year term - 1.25x & 80%

Full-Term Interest Only

▪5-year term - 1.4x & 65%
▪7-year term - 1.35x & 70%
▪10-year term - 1.35x & 70%

The DCR calculated for the partial-term interest-only and full-term interest-only period uses an amortizing payment. Adjustments may be made depending on the property, product and/or market. For partial-term interest-only loans, there must be a minimum amortization period of 5 years for loans with terms greater than 5 years. Acquisition loans with 5-year terms may have up to 1 year of partial-term interest-only. For terms of 10 years or more, loans may have interest only in an amount equal to no more than half of the loan term.