Loan Type |
HUD, Full Doc |
Min Loan |
$2,000,000 |
Max Loan |
Unlimited |
LTV |
80% – 90% (#1) |
Interest Rate |
5.75% – 6.25% |
Term |
Fixed, 35 – 40 years (#2) |
Amortization |
35 – 40 Years (#2) |
DSCR |
1.10 – 1.18 (#3) |
Credit Score |
N/A (#4) |
PrePay Penalty? |
10% @ 10 years (#5) |
Lock Out? |
No |
Interest Guaranty? |
No |
Exit fee? |
No |
Balloon? |
No |
Personal Guarantee? |
No |
Documents Required |
Copy of Purchase Contract & Earnest Money Check (if a purchase), Credit Report (less than 60-days old), Personal Financial Statement (less than 60-days old), last 2 years of Personal and Business Tax Returns, 2 years of Business Financials (Income/Expense Operating Statement & P&L Statement/Balance Sheet), Year-to-Date Business Financials, Appraisal, Environmental Report (if necessary, depending on property type & history), Rent Roll/Leases, Digital Pictures |
Closing Time |
3 – 6 months (#6) |
Lender Fee? |
Typically, 1 point (depending on deal, lender) |
Broker Fee? |
None (#7) |
Eligible Properties |
Apartment Buildings (#8), Assisted Living Facilities |
Eligible States |
All |
Other |
1) 7.5% LTV Seller-held 2nd Mortgage is allowed on Purchases (92.5% CLTV); 2) Interest Only Option available; 3) Third Party Expenses + Loan Costs can be financed; 4) Assumable |
Note #1 |
Construction/Substantial Rehab: 90%, Purchase or Re-fi (Rate & Term): 85%, Re-fi (Cash Out): 80% |
Note #2 |
Construction/Substantial Rehab: 40 years, Purchase or Re-fis (R&T or C/O): 35 years |
Note #3 |
Construction/Substantial Rehab: 1.10, Purchase or Re-fis (R&T or C/O): 1.18 |
Note #4 |
Depends on borrower’s creditworthiness, financial strength and business experience |
Note #5 |
10% for 10 years, declining 1 point each successive year (IE, 10% yr #1 through 1% yr #10); The PPP is Negotiable (ie, the PPP can be bought down); Please see ‘PrePayment Penalty: Subsidy’ |
Note #6 |
Construction/Substantial Rehab: 4 -6 months, Purchase & Re-fis (R&T or C/O): 3 – 4 months |
Note #7 |
Lender usually pays Broker |
Note #8 |
5 or more units |