All ground up construction loans will be IAD (interest as drawn) for the first six months of the loan. All ground up construction loans will be IAD for the first six months of the loan.
Multi-family Property Loans
DSCR: Minimum of 1:20 from market rents
Refinance/Rehab: No cash out, PAYOFF and Rehab Only
Location: No rural properties, must be in a metro area. No vacancy or abandoned properties nearby. No blight ridden areas
Liquidity Requirements:
Minimum of all closing costs in addition $15,000 OR 25% OF THE RENOVATION BUDGET OR CONSTRUCTION BUDGET, WHICHEVER IS GREATER. Plus closing costs. Contact us for details.
FICO: ≥ 700
Closing: 5-10 business days
Loan Amount $100,000 – $1,250,000
Minimum Value per Unit: $35,000
Property Type: 5-10 Units
Term: 9-month term with 3-month extension (extension fees apply).
Liens: 1st liens only. No subordinate liens.
Purchase: 85%
Rehab Budget: 100%
ARV: 65%
IMPORTANT NOTES ABOUT MULTIFAMILY PROPERTY LOANS:
- Rehab Budget: Max budget at 150% of Purchase Price (Exception on a case-by-case basis) Property: No SRO’s, No Condo’s, Minimum Sq Ft of 500 sq. ft. per unit, No Assisted Living or nursing homes, No environmental issues (oil tank certification required), No short-term rentals.
- Full Doc: Seller’s financials on the rent roll required: Market Rents will be used for DSCR purposes. A true and certified, current rent roll from the owner, supported by a current operating statement no older then 45 days of submission. All commercial leases must be submitted along with 20% of residential leases. If property is vacant Market rents will be used.
- Experience: Borrower must have a minimum experience of 3 prior projects and 1 needs to be multi-family within 3 years. Max at 65%. No new borrowers. Must have local market experience.
- Fixed Expense: Management, Maintain and reserves at 5,3,2%. Taxes and Insurance. Vacancy will be 5% and update per the Appraisal actual numbers. Greater than 20% Vacancy will not be accepted. NO EXCEPTIONS