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Conduit Apartment Loan Program Guidelines
Conduit apartment loan program underwriting guidelines are provided for
informational purposes only and do not constitute, or
should not be interpreted, to be an offer to make a
loan, a loan approval, or any other language that
implies that by meeting these basic requirements
CommercialBanc will provide borrower with a loan under
these terms. |
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Eligible Properties |
Multifamily housing with 5 plus units |
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Loan Size |
$1,000,00
- $5,000,000
$5,000,000 and above on a case by case basis |
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Pricing |
Tiered
pricing based on LTV and DSCR
70-180 BPS above swap
Rate buy downs are available |
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Programs |
5, 7,
10, and 20 year balloons
25 and 30 year amortizations |
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Prepayment |
Defeasance - yield maintenance |
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Personal Guarantees |
Non-recourse with standard Carveouts |
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Fees |
Fixed at
$9,500 - $18,500, due at registration
Property condition report required based on asset
condition/quality |
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Loan-to-Value |
75% -
85% LTV
for purchases, rate and term refinance, and cash out
refinances depending on property quality |
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Rate Lock |
30-day
forward lock available with U/W approval
2% commitment deposit credited at closing |
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Occupancy Requirements |
No less
than 90% for 90 days preceding closing
Rent stabilization holdbacks are not allowed |
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Title Requirements |
Title to
be ordered by CommercialBanc at borrower's cost |
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Appraisal Requirements |
Appraisal to
be ordered by CommercialBanc at borrower's cost, no
exceptions |
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Impounds |
Taxes,
insurance, tenant improvements, replacement reserves,
125% for needed repairs |
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Preliminary Submission Package For
a Conduit Apartment Loan: |
Include the following in your request for a
conduit office building loan quote:
1. Property description and location map
2. Representative color photographs
3. Current rent roll and year-to-date operating statement
4. Operating history - prior 3 years, if available
5. Current year operating budget
6. Existing debt and cost basis
7. Sponsor resume |
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