CRE Permanent Financing
Non-recourse, assumable fixed rate financing for the acquisition or refinance of stabilized multifamily rental, cooperative properties, and commercial properties.
Loan Terms
*General Terms are for reference only*
Loan Amount:
$1,000,000 - $100,000,000
Loan Term:
3, 5, 7, 10, or 15 Year Balloon; 20, 25, or 30 Year fully amortizing
Amortization:
25 or 30 Years, based on property condition; interest only financing is available.
Loan to Value:
Multifamily: Maximum 80% of appraised value on purchase; Commercial Properties Max LTV typically 65% - 75%
Interest Rate:
Risk-based “Tier” pricing, varying with LTV and DSC ratios
Prepayment Terms:
Yield Maintenance with no lockout, defeasance, or fixed, step-down prepayment schedules
Third Party Reports:
MAI Appraisal, Physical Needs Assessment, and Environmental Phase I Assessment are required, plus Seismic Report may be required for properties in Seismic Zones 3 and 4
Reserves:
Tax and insurance escrows are required; Funded Repair and Replacement escrow is required, based on engineer’s Physical Needs Assessment; For loans of less than 65% of value with no deferred maintenance, funding of repair and replacement reserve can be waived at lender’s discretion
Application Fee:
$10,000 - $25,000; Covers 3rd Party reports and processing/underwriting costs
Legal Fees:
$8,000 to $12,000 varying with characteristics of the deal
Assumability:
Loan is assumable, subject to lender approval of proposed replacement borrower; Fees include 1% assumption fee, and a $3,000 processing fee to cover lender’s underwriting expenses