Commercial Loans

Large Apartment Loan Program Guidelines
Loan Amounts $1,000,000 and up
ELIGIBLE PROPERTIES:
Apartment Buildings of 5 or more units; Mixed Use with up to 20% commercial space allowed. A, B or C + grade properties

INELIGIBLE PROPERTIES:
Properties operating with weekly or daily rentals; Single Room Occupancies (rooming houses); Properties in need of excessive deferred maintenance or obsolescence; Properties supplied by private well (as opposed to public water source); Properties with less than 85% stabilized occupancy for at least the preceding 90 days.

LENDING TERRITORY:
Nationwide. Market must have reasonable economic and demographic base.

MINIMUM LOAN AMOUNT: $1,000,000

MAXIMUM LOAN AMOUNT: No Maximum Loan Amount

MAXIMUM LOAN TO VALUE:
80% on all eligible transactions including purchases, rate/term and cash-out refinances

RATES See current interest rates posted at www.nationalapartmentfinance.com

AMORTIZATION: 30 yrs maximum; or shorter amortization to suit

Term: Choice of terms from 5 to 30 years

Loan Fee: 1%

Recourse/Non-Recourse: Non- Recourse

Pre-payment Penalties: Yield Maintenance or Defeasance

Assumable?: Yes

Secondary Financing:
Allowed after 1 year, with second mortgage financing offered by lender up to 80%.

Eligible Borrowers: Individuals, Corporations, LLCs, Partnerships, and Trusts

For loan over $3 million, and case by case on smaller loans, individual borrowers must form a single asset bankruptcy remote entity to hold the property. Borrowers must have experience in multi-family property ownership

Credit Requirements:
Good credit, scores over 620. Liquid Assets greater than or equal to 6 mos. principle and interest payments. Reasonable net worth compared to requested loan amount.

Documentation: Full Doc (National Apartment Finance has stated income programs available, contact your loan officer for a quote)

Time to Close: 60 days

Items Needed for Pre-Approval:
1) Completed Loan Request- Apartment Application Questionnaire
2) Current Rent Roll
3) Last 2 Year’s and Year-to-date Operating Statements.
4) Trailing 12 months gross income (month by month breakdown)
5) Emailed Digital Photos of Property (minimum of 5)
6) Personal Financial Statement on principal(s)
7) Copy of Purchase Contract (if applicable)

Fax Pre-Approvals to: 240-255-0063

Or Email to: LoanApplication@firstbanc.net

Mail or Fed Ex to:
Firstbanc, LLC
Attn: Underwriting
6701 Democracy Blvd. Suite 300
Bethesda, MD 20817

 

LARGE APARTMENT LOAN PROGRAM BENEFITS

Lowest rates on most term optionsFully amortized optionsNon Recourse

– Key Principles must sign loan docs for borrowing entity, but do not personally guarantee the loan except for standard “carve-outs.”

Unlimited assumability

– This loan may be assumed an unlimited number of times during the life of the loan by subsequent buyers or borrowers. There is no remaining obligation of any former borrower after each assumption. This also ties into the non-recourse feature. The flexibility and limitation of liability this provides is critical.

Supplemental financing program

– Your property may be eligible for an attractive second and even a third mortgage one year or more after your first mortgage closes that can be used for whatever purpose you choose – to help finance a future sale or just to access cash from your property’s equity for any reason. This supplemental financing can be taken either by you or a future buyer, and is also fully assumable. This unique feature combined with the assumable feature on your original first mortgage loan makes this the most flexible program for any future plans you may have for the property.

Experienced representatives

– We do multi-family loans all day every day. We know the program inside and out, how to protect you through the pre-qualification process, and then how to get your loan closed quickly and efficiently.