| Loan Type | HUD, Full Doc |
| Min Loan | $2,000,000 |
| Max Loan | Unlimited |
| LTV | 80% – 92.5% (#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? | No (#7) |
| Eligible Properties | Apartment Buildings (#8), Assisted Living Facilities |
| Eligible States | All |
| Other | 1) Interest Only option available (I/O payments can be made for 2 years.); 2) 7.5% LTV Seller-held 2nd Mortgage is allowed on Purchases only, for a 92.5% CLTV (see Note #1, below); 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 |