Financing provided through this program is only available for properties located in Michigan or Florida.Available Product Type: SOFR 7/6 ARM, SOFR 10/6 ARMLoan Amount: $766,550 MaximumLTV: Purchase and No Cash Out Refinance - Maximum 99%Prepayment Penalty: NoneLoan Assumption: NoneEligible Properties: 1-unit dwellings, attached and detached condominiums, PUDsEscrow: An escrow account must be established for property taxes, and flood insurance, if requiredUnderwritingNo Private Mortgage InsuranceOccupancy – Primary residencesMinimum Credit Score - 700DTI – Max 43% (UW/Mgmt exceptions up to 50% with minimum 3 documented compensating factors)Student Loans – If in deferment, no qualifying payment requiredDown payment of 1% must be borrower’s own funds, while closing costs and prepaids may be gift fundsAttached condominiums require a 10% down paymentEligible Borrowers – Protect and serve heroes are defined as employees of public or private education institutions, employees of medical and healthcare organizations, all first responders, and active or former military personnel.Servicing: Retained

Loan: The loan on Braxton at Tamarron is a capped floating rate loan that is SOFR + 3.45% with a maturity date of January 2025 with two 1-year extensions available.

He told investor to invest at ground up dev. while cap rate is below SOFR/interest rateb) His project is like 75% LTV with 7.5% fixed and purchase at 3%-ish rate LOLc) well at least he's not using floating, but still, asking LP to invest at ground up dev is crazyD) you only one chart to understand CRE, buy only when everything is streamline, buy when cap is declining after period of stabilizaiton , buy when fed rate going down or stable. 

The pay rates were amended to either SOFR, a spread over SOFR or a fixed rate, with the balance of the interest due under the original loan terms being deferred.

Most mortgage companies follow one of these indexes; 5yr Treasury Bond, 10yr Treasury Bond, SOFR, or WSJ (mostly Hard Money follows this one). 

Most HELOC's are based off prime and these are consumer based products (rate determined by margin which is fixed + prime).However the commercial departments in many of these banks or credit unions offer fixed lines on their commercial interest only products that can be based off different indexes like CMT (contact maturity treasury), SOFR (secured overnight financing rate), or other indexes that are less volatile than the prime which is directly linked to the fed funds rate + 3.00%.This is why the fed funds is at .50% right now and our prime is currently 3.50%.Just make sure to pick a product and index that works with your overall strategy because in between deals you'll be carrying the "equity," you used to buy a property on this line most likely.

I will tell you that many people who invested in Class B or C apartments during that time got a variable rate loans which was based on SOFR ( secured overnight financing rate) + set number.  

Knowing what I know about Bankcorp, the loan would have had a floating rate, likely somewhere in the range of SOFR + 3-5% and would mature in October of this year. 

So say you had $100k investment, when that ends up being $50k returned and it’s three years later there will be some pain Yes I can say 90 percent of the fund level are in trouble , either capital call or they try to exit within cost or they purchase swap to hedge , with the capital call of course , I would say all LP in 2020 2021 are losing money … hence they try to redempt from good investment like HML.most syndication uses floating rate back then … hopefully by this time the cost for swap is cheaper so they can hedge their loss a bit currently most of them can’t even meet the SOFR portion of the debt. 

I have noticed a lot of institutional shops and real estate private equity firms will factor in SOFR rates into their analysis.