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Multi Family and Assisted Living Loan ProgramsLoan Min. $2 million – No Maximum
Determine The Market
The first part of the loan process is a feasibility study to establish marketability, market rents and operating expenses. In Addition a project description including amenities, preliminary site, building and unit plans; rough, estimated project costs; and environmental reports will be needed. At the end of the pre-application, we will issue a Letter of Intent, which is a written commitment with an agreement that the project is feasible and establishing the NOI neccessary to be used for underwriting. This agreement states the maximum mortgage amount based on the debt service coverage, and determines the borrower equity requirements.
Establishing the Costs
The second part of the loan process, analyzes the borrower, property manager and/or general contractor, as well as the the final architectural plans, specifications and construction costs. Additional due diligence items neccessary during the second part include zoning acceptability, site control and other usual commercial loan stipulations. Processing of the second part also include a cost and Architectural/Engineering review to establish acceptability of the final design and estimate costs. At the end of the second phase, a firm commitment will be issued for the financing of the project, and the interest rate for the construction and permanent mortgages to be locked.
The Closing
The closing is the last step for the construction and the 40 Yr. permanent financing. Since the interest rate is locked for both mortgages, developers do not have to worry about permanent loan interest rate change or increase. To a certain extent, closings for this program are complete because of our firm commitments are, final commitments with no additional conditions.
Unlike traditional bank construction financing, when we issue a commitment, we have finalized and approved all relevant items, including final design approval, cost approval, general contractor approval, etc. In fact, our closings are also Construction Draw #1, and all borrower pre-paid items (architecural, survey, engineering, etc.) are drawn down at this stage and either credited to borrower equity requirements, or paid to the borrower.
New One Time Close Construction/Substantial Rehabilitation Insured Program
One Time Close, and one interest rate lock which is lower than traditional bank financing. This program utilizes an interest only (interest is capitalized into the mortgage) construction loan that automatically converts to a 40-year permanent fixed rate mortgage upon completion of construction.
90 % Loan-to-Cost (over 100% if land equity is used)
40 Year amortization
40 Year Term (no balloon)
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten Year Treasury Yield.
“Developer’s Fee” of 10% of cost allowed to be used towards equity requirement.
No personal liability (Non-Recourse)
Negotiable Pre-Payment Terms
1:10 Minimum Debt Service Coverage
This loan is always assumable
Third-party expenses and loan costs are financeable
Acquisition Multi-Family
85% Loan-to-Value
35 Year Amortization
35 Year Term (no balloon)
7.5% Seller promissory note allowed for down payment requirements (92.5% CLTV)
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
No personal liability (Non-Recourse)
Negotiable pre-payment terms
1:18 Minimum Debt Service Coverage
This loan is always ASSUMABLE
Refinance Multi-Family
85% Loan-to-Value (80% with cash out)
35 Year Amortization
35 Year Term (No Balloon)
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
No personal liability (Non-Recourse)
Negotiable pre-payment terms
1:18 Minimum Debt Service Coverage
This loan is always ASSUMABLE
Acquisition Assisted Living/Skilled Nursing
85% Loan-to-Value
35 Year Amortization
35 Year Term (no balloon)
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
No personal liability (Non-Recourse)
Negotiable pre-payment terms
1:18 Minimum Debt Service Coverage
This loan is always ASSUMABLE
Third-party expenses and loan costs are financeable
Refinance Assisted Living/Skilled Nursing
85% Loan-to-Value
35 Year Amortization
35 Year Term (no balloon)
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
No personal liability (Non-Recourse)
Negotiable pre-payment terms
1:18 Minimum Debt Service Coverage
This loan is always ASSUMABLE
Third-party expenses and loan costs are financeable
Acquisition Manufactured/Mobile Housing
80% Loan-to-Value
30 Year Amortization
10-30 Year Term
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
No personal liability option (Non-Recourse)
Negotiable pre-payment terms
1:20 Minimum Debt Service Coverage
*These are not government loans, they are traditional loans, FHA provides mortgage-insurance not the mortgage. There is no element of affordable housing.
Rates and Terms determined by LTV, Property Type and other conditions
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