$1 Million - $7.5 Million

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▪ 5, 7 and 10-year hybrid ARM and fixed-rate options
▪ 5 to 100 units
▪ Up to 80% LTV
▪ Non-recourse
▪ Interest-only available
▪ 30-year amortization
▪ Declining prepayment options
▪ Streamlined loan documents
▪ Certainty of execution

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Loan Amount

$1 million - $7.5 million in all markets*

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Unit Limitations

Loan amount > $6 million and ≤ $7.5 million: 5 to 100 units (above 100 units may be permitted).

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Loan Purpose

Acquisition or refinance.

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Loan Terms

Hybrid ARM: 20-year term with initial 5, 7, or 10-year fixed-rate period
▪ Fixed: 5, 7, or 10-year loan term

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Amortization

Up to 30 years.

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Interest Only

Partial-term and full-term interest-only available.

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Prepayment Penalties

Declining (step-down) schedules and yield maintenance available for all loan types.

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Eligible Borrowers/Entities

Limited partnerships; limited liability companies; Single Asset Entities; Special Purpose Entities; tenancy in common with up to five unrelated members; and irrevocable trusts with an individual guarantor.

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Recourse

Non-recourse, with standard carveout provisions required

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Subordination Debt

Not permitted.

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Net Worth & Liquidity

▪ Minimum Net worth: Equal to the loan amount
▪ Minimum Liquidity: Equal to 9 months of principal and interest

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Eligible Properties

Multifamily housing with 5 residential units or more, including:
▪ Properties with tax abatements
▪ Age restricted properties with no resident services
▪ Properties with space for certain commercial (non-residential) uses
▪ Properties with tenant-based housing vouchers
▪ Low-Income Housing Tax Credit (LIHTC) properties with Land Use Restriction Agreements (LURAs) that are in either the final 24 months of the initial compliance period or the extended use period (investor must have exited).
▪ Properties with local rent subsidies for 10% or fewer units where the subsidy is not contingent on the owner’s initial or ongoing certification of tenant eligibility.
▪ Properties with certain regulatory agreements that impose income and/or rent restrictions, provided all related funds have been disbursed.

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Ineligible Properties

Seniors housing with senior care services
▪ Student housing (greater than 25% concentration)
▪ Military housing (greater than 25% concentration)
▪ Properties with project-based housing assistance payment contracts (including
project-based Section 8 HAP contracts)
▪ LIHTC properties with LURAs in compliance years 1 through 12
▪ Historic Tax Credit (HTC) properties with a master lease structure
▪ Tax-exempt bonds Interest Reduction Payments (IRPs)

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Occupancy

Stabilized property with a minimum of 90% physical occupancy.

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Escrows

Real estate tax escrows deferred for deals with an LTV ratio of 65% or less.
▪ Insurance escrows deferred
▪ Replacement reserve escrows deferred

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DSCR & LTV Minimums

LTV and DSCR requirements vary based on the market tier in which the property resides: Top, Standard, Small, or Very Small. 

Top Markets 1.20x1 & 80%

Standard Markets 1.25x & 80%

Small Markets 1.30x 75%

Very Small SBL Markets 1.40x & 75%

Minimum 1.25x Amortizing DSCR for loans greater than $6 million

Maximum 70% LTV for Refinances

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Partial Term Interest Only Options

Top & Standard Markets

▪ 1 year on 5-year term
▪ 2 years for a 7-year term
▪ 3 years for a 10-year term

Small & Very Small Markets

▪ 0 years on 5-year term
▪ 1 year for a 7-year term
▪ 2 years for a 10-year term

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Full Term Interest Only Adjustments

Top and Standard Markets +.15x & Max 65% LTV
Small and Very Small Markets +0.10x & Max 60% LTV

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Fixed Rate Prepayment Options

5-Year - 54321 or YM

7-Year - 5544321 or YM

10-Year - 5544332211 or YM

Hybrid Prepayment Options

5-Year - 54321 +1%

7-Year - 5544321 +1%

10-Year - 5544332211 +1%

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Hybrid ARM consists of an initial fixed-rate period followed by a floating-rate period. During the floating rate period the coupon is based on the 30-day Average SOFR + 325 bps margin. Every six months, the floating rate may increase or decrease by up to 1%, never be less than a floor of the initial fixed interest rate and never be greater than a maximum lifetime cap of the initial fixed interest rate + 5%.

Prepay description: For example, for a Hybrid ARM “321(3), 1%” refers to 3% for year 1 of the fixed-rate period, 2% for year 2, 1% for the next 3 years, then 1% during the remaining floating-rate period. Higher of yield maintenance (YM) or 1% during the YM period. With respect to Hybrid ARM mortgage loans with yield maintenance, for any prepayment made during the yield maintenance period, the prepayment charge will initially be the greater of (i) 1.0% of the unpaid principal balance or (ii) yield maintenance. Any prepayment made after the yield maintenance period, the prepayment charge will be 1% of the unpaid principal balance.