| Loan Type | HUD, Full Doc |
| Min Loan | $2,000,000 |
| Max Loan | Unlimited |
| LTV | 80% – 92.5% (#1) |
| Interest Rate | About 6.500% (6.375% – 6.750%) |
| 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 | 4 – 6 months (#6) |
| Lender Fee? | Typically, 1 point (depending on deal, lender) |
| Broker Fee? | 0% – 1% (#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 only, for a 92.5% CLTV (see Note #1, below); 2) Third-Party Expenses + Loan Costs can be financed; 3) 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): 4 – 5 months |
| Note #7 | Most Lenders pay the Broker, so there usually is no broker fee charged to the deal. (If there is, it will be disclosed very early in the process, so that the client can decide whether/how to proceed.) |
| Note #8 | 5 or more units |