|
MULTI-FAMILY LOANS & APARTMENT LOANS WILL CONSIST
OF INVESTMENT PROPERTY LOANS FOR THE FOLLOWING TYPES
OF REAL ESTATE PROPERTIES
Different Categories of Multi-Family Units
Low-Rise Garden Apartments
Mid-Rise Apartments
Military Housing
Townhouse Style
Co-op
Student / Military Housing
Other Apartments
The following are general underwriting requirements,
for specific information on multi-family loans and
for further information click at the bottom of the
page for a Complimentary Professional
Loan Analysis.
Apartments and Apartment-Type
Maximum Loan
To Value - 80%
Maximum Amortization – 25 to 30 years
Minimum DCR
- 1.20x to 1.25x
Min. Vacancy Reserve – the greater of actual or
market vacancy; typically 3% to 10%
Minimum Replacement Reserves - the greater of actual
or $225 to $350 per unit
Minimum Occupancy requirement – typically 85%
Cap Rate – use market-driven
capitalization rate; typically 7.5% to 10%
Student / Military Housing
Maximum Loan To Value - 75% to 80%
Maximum Amortization – 25 years
Minimum DCR - 1.25x to 1.30x
Minimum Vacancy Reserve – the greater of actual
or market vacancy; typically 5% to 10%
Minimum Replacement Reserves - the greater of actual
or $300 to $400 per unit
Minimum Occupancy requirement – typically 85%
Student leases must require 12 month terms, parental
guarantee
Cap Rate – use market-driven capitalization rate;
typically 7.5% to 10%
Further Information...
Lease expirations should not indicate 25% or greater
of all units in any given month, 50% for any three-month
period, and 75% for any six-month period.
Adequate community services (such as fire,
police, and school and health facilities) within
a 10-mile radius.
For a No-Obligation
Professional Loan Analysis of Multi-Family Loans
fill in the form please. |
