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Multifamily lending program
- Minimum loan size: $500,000 (Click here for loan amounts greater than $1,000,000)
- No DTI/No ratio/No borrower tax returns/No borrower income requirement!
- Up to 40 year term, 40 year amortization, fixed for 3, 5, 7, 10 or 15 years then adjustable
- Interest only option available
Our Multifamily lending program for loan amounts less than $1,000,000 doesn't require a borrower to furnish tax returns or show any income. It is the property which qualifies.
The property will require a minimum DSCR of 1.15. Maximum LTV is 80%
- Interest Rate index/margin-after the fixed period 6 Mo. LIBOR + 2.5%-2.75%
- Credit score 660 minimum with no mortgage lates.
- Assumability-one time, subject to 1% fee and approval
- Periodic Adjustment Cap: 3%-5% first adjustment, 1% subsequent, 6% lifetime cap
- Prepayment: Graduated Stepdown;
- Recourse: Generally, recourse is required; partial recourse and non-recourse is available at lower leverage.
- Subordinate Financing: Not available
Property Subtypes include:
- Low, Mid & High-Rise Apartments
- Student & Military Housing
- Mixed Use considered with no more than 25% of the income from commercial tenants.
- Note: Properties with SRO, shared bathrooms/kitchens or weekly occupancy patterns are not acceptable.
- The property will show strong operating performance with no material declines in revenue and net operating income over the past two years.
- The property’s occupancy will be at or above the local market’s average occupancy with no material declines over the past two years; however, newly constructed or recently rehabilitated properties which have not reached stabilized occupancy will be considered on a case‑by‑case basis.
- Borrower and property manager should have experience in owning and/or managing similar properties in comparable markets.
- Post‑1980 construction is preferred.
- Older properties in good repair and having undergone material renovations within the last ten years.
- The remaining useful economic life of the property shall not be less than the amortization period as determined by the Appraisal or Engineering Report.
- Building design, floor plan, technological capabilities and amenities will be appropriate for the immediate market area.
- No material required repairs or deferred maintenance, unless satisfactory reserves are established.
- Established or emerging market with a minimum MSA population of 20,000 is preferred.
- Diverse employment and/or economic base.
- In‑fill locations that are reasonably insulated from the threat of new supply are preferred.
- Property should be located near, and easily accessible to major highways/freeways, employment sources and other demand generators.
- Condo's Fractured Interests are not allowable; borrower must own 100% of all condo units in association
- Condo Conversions Not Available
Ineligible Property Types Weekly rentals, Single Room Occupancy (SRO) / Shared bathrooms, Bed & breakfast
Loan amounts $1,000,000 to $25,000,000
MULTIFAMILY
5+ (Units)
Multifamily Rate Table-Effective July 1, 2008
| |
Rate |
Pre-payment |
Max
LTV
|
DSCR |
Term/
Amort.
|
| 5 Yr Fixed |
7.71% |
5,4,3,2,1 |
80% |
1.20 |
10/30 |
| 7 Yr Fixed |
7.91% |
7,6,5,4,3,2,1 |
80% |
1.20 |
10/30 |
| 10 Yr Fixed |
8.09% |
5,5,5,4,4,4,3,3,2,1 |
80% |
1.20 |
10/30 |
* Rate can be locked for 60 days for a 0.125% increase to rate at time of commitment.
Program Notes
| Borrower Tax Returns |
Required for all transactions |
| Borrower Income |
No DTI / No Ratio |
| Net Worth |
Equal to loan amount, requires minimum 6 months post-closing liquidity |
| Fixed To Float |
5Yr and 7Yr convert to to Float at 300 bps over 3 Month LIBOR after fixed rate term |
| MSA Population |
Property must be located in a metropolitan area with a minimum MSA population of 25,000 |
| Subordinate Financing |
Not allowed in this program |
| Prepayment |
Graduated Stepdown; optional Yield Maintenance or Treasury Defeasance |
| Credit Score |
Min. 600; with no mortgage lates, public records; case-by-case basis |
| Recourse |
Generally, recourse is required; partial recourse and non-recourse is available; call for quotes |
| Condo Conversions |
Not allowed |
* Risk Based Pricing All loans are subject to adjustment for age and property condition, unstable historical operations, multi-layered borrowing structures, credit scores, subsidized housing, high percentage of singles and other exceptions to the
underwriting guidelines.
Commercial Finance Solutions (CFS) generally issues a Loan Term Sheet within 24-48 hours of receipt of a complete loan submission which generally includes:
1. Completed Commercial Mortgage Application (CFS form, your form, or 1003 plus supporting docs is acceptable).
2. Property Rent Roll (your form or the CFS form).
3. Property Financials (your form or the CFS form) - at least one full year plus Year-To-Date.
4. Borrower Personal Financial Statement or 1003 illustrating assets, liabilities, net worth and Schedule of Real Estate Owned.
5. Color photos
CFS orders the appraisal, property inspection report and initiates title. Our underwriting team will work with you to assemble the balance of the credit file. Upon our receipt of the third party reports and the complete credit file, CFS will issue final approval, draw doc's and fund.
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CFS is accredited by the Better Business Bureau
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