Multi-family financing.
| Loan Amounts | $750,000 up to $25,000,000 |
| Term | Ballon Terms of 5 ,7, or 10 years with amortized terms up to 30 years or 30 year fixed program. Hybrid structures are available with 7 and 10 year fixed rate terms. |
| Prepay Penalty | Yield Maintenance with a 1% minimum (Declining prepayment penalty available). |
| Max LTV | 75% |
| MIN DSCR | 1.25X minimum |
| Recourse | Typically Full Recourse; Non-Recourse loans are available on a case by case basis. (lover loan to limits apply) |
| MIN Occupancy | Properties must demonstrate a minimum occupancy of 90% for the 90-day period prior to close. |
| Escrows | Tax and Insurance escrows are required. |
| Replacement Reserve Accounts | Not required on loans less than $3,000,000. Typically required on loans greater than $3,000,000, based on engineer's physical needs assessment (PNA). |
| Rate Lock | Occurs after the commitment is issued. |
| Rate Lock Deposit | 1% Collected at rate lock, credited back to borrower at closing. |
| Fees | 1.5% Lender Origination fee & $8,500 non-refundable fee for 3rd party reports and processing; $4500 in larger MSA's (determined by underwriting) |
| Seasoning | For loans that lack 24 month seasoning, the max loan may not exceed the original purchase price plus 100% of the cost of improvements made. |
| Markets | For loans less than $3,000,000, MSA population of 500,000 required for loans 65%-75% LTV and population of 250,000 for < 65% LTV |
| Borrower | For loans less than $3,000,000, domestic single asset entity required. |
| Credit | Minimum 680 credit score. |
| Experience | Key Principles will need a minimum of 2 yrs. experience with two or more multi-family properties (5 units or more) or owned the subject property 5 yrs. or more. |
| Construction/ Rehab Op. History | For loans < $3,000,000 - requires 12 months of stabilized operating history to underwrite a deal coming off construction or substantial rehab (where occupancy fell below stabilization for an extended period). |
| Documents Required for Application | Property rent roll, property historical operating statements including Y.T.D., key principal financial statements and credit report, REO schedule and property photographs. |
| Assumability | Loan is assumable, subject to lender approval and 1% fee. |
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