Multifamily / Commercial
- Stated Income Program
From $500,000 to $3,000,000
Available Nationwide for Purchase, Refinance &
Cash-out
Fully amortized – No Balloon Payment!
Quick closings, typically within 30-45 days
Guarantee / Recourse
All loans are full recourse to the borrower. Personal
guarantees are mandatory for all eligible borrowers
including individuals, corporations, partnerships,
limited partnerships, limited liability companies, and
certain trusts.
Debt Service Coverage Ratio (DSCR)
Property must debt service a minimum of 1.20x. Owner
Occupied properties will be evaluated based on market
rent ability.
Prepayment Penalties
2 year lockout & 5% prepayment penalty for 5 years on
15-year amortization
3 year lockout & 5% prepayment penalty for 6 years on
20-year amortization
Caps/Floors
1-Year ARM – 2% annual caps, 6% lifetime cap
2 & 5 year fixed – 1% every 6 months, 6% lifetime cap.
Life Floor on all loans equal to the start rate.
Assumability
Loans may be assumed for a 2% fee; requires lender
approval.
Escrows
Escrows for taxes and insurance are required.
Subordinate Financing (second lien)
A second lien from seller (or other private party) is
allowed up to 90% combined loan-to-value (CLTV). Minimum
term for the second lien is 5 years.
Borrower Costs
$1,500 Application Fee plus Third Party Deposit due with
term letter. Lender will order appraisal (no
exceptions). Origination fee, environmental insurance,
survey, title insurance and $1,750 legal/processing fee
due at closing.
Seasoning Requirements
No seasoning requirements. Maximum of one ownership
transfer in last 2 years. Cash-out may reduce LTV by
10%.
OTHER PROPERTY TYPES:
Commercial pricing available for existing office,
retail, warehouse, mobile home park, light industrial,
and self- storage properties.
INELIGIBLE PROPERTY TYPES:
Gas stations, lube centers, convenience stores, nursing
homes, hotels,
assisted living centers, churches, adult entertainment,
and other hospitality properties, heavy
industrial, mechanic shops, churches,
ranches/agricultural, raw land. Construction, interim,
and rehab deals are not eligible.
Program Details
Credit Qualifications
For the Primary Borrower, the middle score must be 680+,
low score must be 640+.
For the Co-Borrower, the middle score must be 580 to be
on the application, must be 640 for income to be
included in underwriting. Any credit under 580 is not
acceptable.
Credit less than 680 for principle borrower may qualify
at higher rates.
Guarantee / Recourse
All loans are full recourse to the borrower. Personal
guarantees are mandatory for all eligible borrowers
including individuals, corporations, partnerships,
limited partnerships, limited liability companies, and
certain trusts.
Rate Lock
Automatic (free) rate locks on the 6 month adjustable, 2
yr and 3 yr terms.
Optional rate locks on the 7 yr hybrid and the fixed
rate programs; $1,000 lock fee due at the time the Term
Letter is signed and returned. Lock fee will be credited
back to borrower at closing. 1/8% rate and margin
increase with rate lock option (7 yr hybrid and fixed
rate program only).
Prepayment Penalties
6-month adjustable, 2, 3, and 7 yr hybrid: 5% for the
first 5 years
Fixed rate programs: 10%, declining 1% per year for 10
years.
Prepayment may be waived after two years in case of
property sale (excluding 6-month adjustable and 2-year
hybrid rate plans). This option will require a ¼%
increase in the rate and margin.
3-year Lockout option is available on the 6-month
adjustable and 2-year hybrid loan program. If selected,
the rate will be decreased ¼%.
Caps/Floors
Periodic Cap for the 2, 3, & 7 yr programs is 2% for the
initial reset and 1.5% thereafter. Periodic Cap for the
6-month adjustable program is 1.50%. Life Cap on all
programs equal to the initial fully indexed rate plus
6.0%. Life Floor on all loans equal to the start rate.
Assumability
Loans may be assumed for a 1% fee; requires lender
approval.
Escrows
Escrows for taxes and insurance are required.
Subordinate Financing (second lien)
A second lien from seller (or other private party) is
allowed. Up to 95% Combined Loan-To-Value (CLTV) on
multifamily and mixed-use, and up up to 90% CLTV on
commercial properties. With the addition of a second
lien, rate and margin of the first lien will increase by
1%; first lien max LTV will decrease by 5%. Minimum term
for the second lien is 5 years.
Seasoning/Cash-out Requirements
No seasoning requirements. Unlimited cash out is
permitted up to maximum LTV.
Borrower Costs
$1,500 Application Fee plus Third Party Deposit due with
term letter. Lender will order appraisal (no
exceptions). Origination fee, environmental insurance,
survey, title insurance and $2,250 legal/processing fee
due at closing.
All information presented on
this page is subject to change without notice.
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