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MULTI-FAMILY LOANS WILL CONSIST OF LOANS FOR THE FOLLOWING TYPES OF 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 Analysis of Multi-Family Loans click here.
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