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Multifamily and Apartments |
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Multifamily / Apartment properties are the most basic commercial loan types and offer the most efficient and timely loan processing.
Multifamily loans are offered through a multitude of national commercial lenders, local banks and savings and loans, insurance companies, correspondents, and portfolio lenders.
Loan Guidelines
Generally, multifamily/apartment loans will have the following terms and conditions:
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Loan to Value (LTV)
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80% Max
90% Max for HUD/FHA Loans over $1,000,000
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Amortization
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30 years (360 months)
40 years for HUD/FHA Loans over $1,000,000
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Interest Rate
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5.75% - 6.75%
(+400-500 bp over Treasury)
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Point and Fees
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1% Origination Fee to lender
2-4% Total fees for HUD/FHA Loans over $1,000,000
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Third Party Reports
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Appraisal
Environmental questionnaire or Environmental Report (if required)
Title Commitment and Insurance
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Documentation
The following is a list of items required to process your multifamily/apartment loan.
The more of the following information you can provide, the faster we can respond to your loan request:
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Executive Summary
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Brief description of the loan request, including:
- Desired loan amount
- Estimated current as-is value of property
- If Construction:
- Estimated as-completed value
- Sources and uses of funds
- Construction Budget
- Exit strategy
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Rent Roll and Income Statement
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Current Rent Roll required. YTD and Historical rent rolls are also helpful.
Things to include in rent roll:
- Unit #s with square footage of unit
- Bedroom/bathroom count
- Tenant names
- Base rent and description of any pass-through expenses absorbed by tenant (utilities, gas, cable, etc.)
- Itemize regulated units (Rent controlled, Section 8, etc)
- Other income (laundry, storage, parking, etc.)
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Expense Statement
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Current monthly expense statement required. YTD and historical expense statements are helpful. If available supply property operating statements for the past two (2) years.
Things to include in expense statement:
- Annual property taxes
- Insurance
- Water/sewer taxes
- Fuel and electricity
- Maintenance/repairs
- Management Costs
- Advertising/Marketing
- Salaries
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Property Description
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Description of the subject property, including:
- Color photos of subject property
- Location details and area amenities
- Floor plans (if applicable)
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Borrower Information
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The following personal documents will be required by most lenders:
- Personal Financial Statement for each Borrower/Principal.
- Resume / Background of the Borrower(s) including:
o Current properties owned
o Past projects completed.
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