3 or more reasons WhY Commercial properties are vastly......

[Chauncey White]

3 or more reasons WhY Commercial properties are vastly superior to residential properties:

The Commercial property itself for the most part qualifies for the loan vs. the fico score of the borrower with residential property.

You are able to obtain NON-recourse financing (not personally liable) for commercial loans.

There are Commercial properties available that are non-distressed with long term (7, 10 and 20 year) professional tenants.

[size=18]Multi Family Financing Programs[/size]

Multi New Construction And Substantial Rehab

Multi Family Refinance

Multi Family Acquisition Loans

Assisted Living/Skilled Nursing

Manufactured/Mobile Housing

Establish The Market

The first step of this loan process is to engage a feasibility study to determine marketability and to establish market rents and operating expenses. Additional items required at this stage include a project description including amenities, preliminary site, building and unit plans; rough, estimated project costs; and environmental reports. At the conclusion of processing the pre-application, we will issue an Invitation Letter, which is a written commitment agreeing that the project is both feasible and setting NOI to be used for underwriting. This agreement sets the maximum mortgage based on debt service coverage, and helps to finalize borrower equity requirements.

[b]
Determine the Costs[/b]

During the second phase of the loan process, analyzes the borrower, property manager and general contractor, as well as the the final architectural plans, specifications and construction costs. Additional due diligence items during Phase II include zoning acceptability, site control and other typical commercial loan requirements. Processing of this phase also includes a Cost and Architectural/Engineering review to determine acceptability of final design and cost estimates. At the conclusion of this phase, WE issue a Firm Commitment to finance the project, and the interest rate for both the construction and permanent mortgages may be locked.

[b]
The Anticlimax[/b]

The closing is the final step for both the construction and the 40- Year permanent financing. Because the interest rate is locked for both mortgages, developers do not have to worry about permanent loan interest rate risk. To a certain extent, closings for this program are anti-climactic because our Firm Commitments are, quite literally, firm, final commitments with no conditions.

Unlike typical bank construction financing, when we issue a commitment, we have finalized and approved all relevant items, including final design approval, cost approval, general contractor approval, etc. In fact, our closings are also Construction Draw #1, and all borrower pre-paid items (architectural, survey, engineering, etc.) are drawn down at this stage and either credited to borrower equity requirements, or paid to the borrower.

New Construction/Substantial Rehabilitation Insured Loan Program offers more favorable terms than traditional two-step construction and permanent financing. With this program, there is only one closing, and one interest rate lock, which is always lower than traditional bank financing. This program utilizes an interest only (interest is capitalized into the mortgage) construction loan that automatically converts to a 40-Year Permanent fixed rate mortgage upon completion of construction.

90% Loan-to-Value

40 Year amortization

40 Year Term (no balloon)

No maximum loan amount

Low, fixed interest rate, based on market spreads over the Ten Year Treasury yield.

“Developer’s Fee” of 10% of cost allowed to be used towards equity requirement

No personal liability (non-recourse)

Negotiable pre-payment terms

1:10 Minimum Debt Service Coverage

This loan is always assumable

Third-party expenses and loan costs are finance-able.
[b]
Acquisition Multifamily[/b]

85% Loan-to-Value

35 Year Amortization

35 Year Term (no balloon)

7.5% Seller promissory note allowed for down payment requirements

No maximum loan amount

Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield

No personal liability (non-recourse)

Negotiable pre-payment terms

1:18 Minimum Debt Service Coverage

Third-party expenses and loan costs are finance-able.

Rates and Terms determined by LTV, credit, property type and other conditions.

[b]Refinance Multifamily

Multifamily - Refinance[/b]

85% Loan-to-Value (80% with cash out)

35 Year Amortization

35 Year Term (no balloon)

No maximum loan amount

Low, fixed interest rate, based on market spreads
over the Ten-Year Treasury Yield.

No personal liability (non-recourse)

Negotiable pre-payment terms

1:18 Minimum Debt Service Coverage

This loan is always ASSUMABLE

[b]Refinance

Assisted Living/Skilled Nursing[/b]

85% Loan-to-value, no cash out

35 Year amortization

35 Year Term (no balloon)

No maximum loan amount

Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield.

No personal liability (non-recourse)

Negotiable pre-payment terms

1:18 Minimum Debt Service Coverage

This loan is always ASSUMABLE

Rates and Terms determined by LTV, credit, property type and other conditions. This is limited information and meant for general reference purposes.

[b]Acquisition

Manufactured/Mobile Housing[/b]

80% Loan-to-Value

30 Year amortization

10-30 Year Term

No maximum loan amount

Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield

No personal liability option (non-recourse)

1:20 Minimum Debt Service Coverage