|
Apartment
Program Summary
|
| Eligible
Properties |
 |
- A, B, C + Properties
- 5+ Unit Multi-Family Units
- Mobile Home Parks on case by
case basis
- Student Housing on case by
case basis
- Mixed Use on case by case
basis
|
| |
| Non-Eligible
Properties |
|
- Single Room Occupancy Units
- Rehabilitation or Renovation
- Under Capitalized Properties
- Master Electrical/Gas
Utilities
|
| |
| Management |
|
- Proven apartment management
experience.
- Properties to be in good
condition.
- Deferred maintenance corrected
via Escrow Holdback.
- Successful Management
capabilities required.
|
| |
| Prepayment |
|
- Loan programs typically have
Periodic Declining Penalties.
- Maximum of 10% principal
reduction is allowed per year without incurring any penalties.
- Prepayment restriction can be
bought down for a .625 bps fee.
|
| |
| Assumable |
|
| Conditional on Lender Consent and
1% fee. |
| |
| Secondary
Financing |
|
| May be Allowed with Bank Approval and
Consent. |
| |
| Recourse |
|
|
|
- Personal Guarantees are
typically required from Principals.
|
| |
| Tax/Insurance
Impounds |
|
| Not required. |
| |
| Replacements
Reserves Impounds |
|
| May be instituted for correction
of existing deferred maintenance or unproven management
capabilities, or chronic undercapitalized buildings. |
| |
| Insurance
Requirements |
|
| A satisfactory ALTA Survey and
ALTA lender's title insurance policy will be required for all
properties. Insurance for
Fee Simple interest, no Leaseholds. Hazard and Liability insurance
policy satisfactory to the Lender will also be required (Flood and
earthquake may be required on a case-by-case basis). |
| |
| Third Party
Reports |
|
| An Appraisal will be
ordered using a bank-approved appraiser.
Format will be determined by loan request parameters. Environmental
Assessment will be conducted to determine the environmental
risk to the subject property. No other environmental report is
required unless suggested by this assessment, property inspection,
and/or environmental questionnaires. If another environmental
report is required, the borrower will be notified prior to
ordering and incurring of additional fees. Property Inspections
will be ordered using a bank-approved
inspector. Borrower is not charged. |
| |
| Lender
Fees/Closing Costs |
|
| Processing Fee |
$750 - $1500 |
| Environmental Report |
$300 |
| Escrow/Settlement |
At Cost |
| Title Insurance |
At Cost |
| Appraisal |
At Cost |
|
| *Upon the acceptance by the lender
/ broker of a complete loan application and receipt of Good
Faith Deposit "GFD", full processing of your loan
request will commence. The "GFD" will cover any out-of-pocket expenses incurred in the processing
of your loan, including but not limited to, appraisal, credit,
environmental report and site inspections. If loan request
gets denied, any excess "GFD" funds, as
well as reports purchased, will be returned to you. |
| |
| Timing |
|
- Credit approval in 3 days
- Funding in 30 days
|
Find a Commercial Mortgage
|
