| Eligible properties |
Garden, mid-rise, high-rise multifamily |
Garden, mid-rise, high-rise multifamily |
| Maximum Loan-to-Value |
86% of purchase price
80% of total cost
80% of appraiser’s as stabilized value |
90% of purchase price
80% of total cost
80% of appraiser’s as stabilized value |
| Minimum Debt Coverage Ratio
Fixed-Rate |
Amortizing or partial IO:
1.20x IO, as is
Generally 1.20x amortizing, as stabilized
NOTE: Partial IO only available for > 7 year term
Full term interest-only (< 70% LTV):
1.20x IO, as is
1.50x IO for terms > 7 yrs, as stabilized
1.55x IO for terms < 7 yrs, as stabilized |
Amortizing or partial IO:
1.15x IO, as is
Generally 1.20x amortizing, as stabilized
NOTE: Partial IO only available for > 7 year term
Full term interest-only (< 70% LTV):
1.15x IO, as is
1.50x IO for terms > 7 yrs, as stabilized
1.55x IO for terms < 7 yrs, as stabilized |
| Minimum Debt Coverage Ratio
Adjustable-Rate |
Amortizing or partial IO:
1.05x IO at max note rate, as is
1.15x amortizing at max note rate < 70% LTV, as
stabilized
1.20x amortizing at max note rate, as stabilized
NOTE: Partial IO only available for > 7 year term
Full term interest-only (< 70% LTV):
1.05x IO at max note rate, as is
1.30x IO at max note rate, as stabilized (> 7 yr term)
1.40x IO at max note rate, as stabilized (< 7 yr term)
|
Amortizing or partial IO:
1.0x IO at max note rate, as is
1.15x amortizing at max note rate < 70% LTV, as stabilized
1.20x amortizing at max note rate, as stabilized
NOTE: Partial IO only available for > 7 year term
Full term interest-only (< 70% LTV):
1.0x IO at max note rate, as is
1.30x IO at max note rate, as stabilized (> 7 yr term)
1.40x IO at max note rate, as stabilized (< 7 yr term)
|
Minimum Upgrade/Rehab Costs
Per Unit |
$3,000 per unit |
$10,000 per unit |
| Maximum Upgrade / Rehabilitation Cost |
Lower of $10,000 per unit or 20% of acquisition cost |
Lower of $30,000 per unit or 30% of acquisition cost |
| Maximum Period to Stabilization |
24 months |
36 months |
| Stabilization Period Extension Option |
2-6 months or 1-12 months, for fee |
2-6 months or 1-12 months, for fee |
| Repair Escrow Required |
Yes, in the form of Cash, Letter of Credit, or Construction Completion Guarantee |
Yes, in the form of Cash, Letter of Credit, or Construction Completion Guarantee |
| Debt Service Coverage Shortfall Reserve Required |
Yes, in the form of Cash, Letter of Credit, or Construction Completion Guarantee; Maximum 6x NOI shortfall |
Yes, in the form of Cash, Letter of Credit, or Construction Completion Guarantee; Maximum 6x NOI shortfall |
| Collateral During Rehab |
First Lien on “As Is” Property, Repair Escrow, Debt Service Coverage Reserve |
First Lien on "As Is" Property, Repair Escrow, Debt Service Coverage Reserve |
