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Small Balance Apartment and
Commercial Conduit
Mortgage Loans
Small Balance, Fixed Rate, Conduit Mortgage Loan Programs for
Multifamily, Office, Retail, Industrial, Warehouse, Self Storage and Manufactured
Housing Communities starting at only $500,000.
| Program
Overview: |
Excellent, Fixed Rate, Conduit Mortgage Loan Programs for
smaller balance Multifamily, Mixed Use, Office, Retail, Industrial, Warehouse, Self Storage
and
Mobile Home Parks. Non-Recourse with great rates and
minimal costs. |
| Eligible Properties: |
Multifamily dwellings containing 5 or more units,
Retail, Office, Industrial, Manufactured Housing Communities, Self
Storage
and Warehouse properties.
|
| Loan Term: |
5,
7,
10 or even 20 year terms. Fully
amortized 15 and 20 year terms are available. |
| Loan Amortization: |
Up to 30 years |
| Loan Amounts: |
Minimum of
$500,000 with
$5,000,000 maximum |
| Maximum Loan-to-Value: |
Lesser of 85% of Purchase Price
or 80% of Appraised
Value on
Apartments, Lesser of 80%
of Purchase Price or 75% of Appraised
Value on Mixed Use, Office, Retail, Industrial, Warehouse, Self Storage
and Manufactured Housing. |
| Minimum Debt Service Coverage: |
From 120%
for Apartments and Mobile Home Parks,
125% for Commercial and
130% for Self Storage. |
| Borrowing Entity: |
Single purpose,
Bankruptcy remote
entity required. |
| Origination Fee: |
Typically 1%. May
be negotiated on larger transactions. |
| Reports: |
Environmental Phase
I including lead,
asbestos, PCB's, wetlands, etc.
Engineering Report including Property
Condition and Seismic (in California).
Appraisal
which is MAI certified and FIRREA and USPAP certified.
Termite Reports for Multifamily only. |
| Interest Rates: |
Competitive based
upon LTV and DSCR. |
| Recourse: |
Non-Recourse except
for standard lender carve-outs. |
| Prepayment Provisions: |
Maximum of two year Lock-Out with Defeasance throughout
the majority of loan term
until the final 6 months which is open to prepayment at par. |
| Reserves: |
Tax and Insurance Escrows are required.
Replacement Reserves are typically
required for Apartments based upon the engineer's report. They may be waived at lower
LTVs. Various funding options are available for Replacement
Reserves. |
| Good Faith Deposit: |
A deposit to cover third party costs and expenses is
required at Application with any excess credited at closing. Estimate
ranges from $9,900
to $14,900 for loans over
$3,500,000. |
| Rate Lock Deposit: |
1% deposited prior to Rate Lock and credited at
closing. Early Rate locks are available. |
| Assumptions: |
Assumptions are
permitted with
lender's approval with a 1% transfer fee plus applicable processing fee. |
| Closing: |
Typically within
5 days of rate lock. |
| Lending Territory: |
Almost Nationwide -
See Specific
State coverage |
On-Line
Apartment or Commercial
Application
See Also:
Main
Commercial & Apartment Loan Page for many more apartment and commercial
loan programs.
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