Adjustable-Rate Mortgages
Purchase or Refinance of Apartment Properties

ELIGIBLE PROPERTIES: 
Apartments, which are existing or recently completed (either newly constructed or substantially rehabilitated). Properties must have a minimum occupancy of 90% at the time of commitment and the preceding three-month period.

LOAN TYPE:
Adjustable-rate balloon mortgages with a 5, 7 or 10-year term.

PREFERRED LOAN SIZE:
$3 million and larger.

MAXIMUM LOAN:
Amount equal to the lesser of:

1. 77.5% of appraised value (75% for 5-year terms); or
2. 1.00 debt service coverage using the underwriting rate. The underwriting rate is equal to the note rate plus the Lifetime Interest Rate Cap.
3. 103% of fixed-rate loan for same term.

INTEREST RATES:
Determined by the market rates at the time of rate lock. Rates vary by loan-to-value ratio, debt service coverage and property quality.

RATE ADJUSTMENT PARAMETERS:
Periodic Interest Rate Cap and Floor equals 1%.
Variety of lifetime Interest Rate Cap and Floor options.*

*The Interest Rate Cap does not have to be purchased and is already built into the pricing.

AMORTIZATION:
Up to 30 years.

PERSONAL RECOURSE:
None, except for standard exceptions to non-recourse, which are the responsibility of the Key Principal(s).

ASSUMABILITY:
Assumable, subject to CWCapital approval and a 1% transfer fee.

PREPAYMENT:
No prepayment allowed for the first year; thereafter, either 1% or fixed declining prepayment options.

CONVERSION OPTION:
If borrower chooses conversion option, the loan can convert to a new 7-year or 10-year fixed-rate loan. This conversion is available during loan years 2 through 5.

SUBORDINATE FINANCING:
Fannie Mae Supplemental Loans (second mortgages) available 12 months after initial loan closing.

Supplemental loans can be provided on a fixed or adjustable-rate basis.

ESCROWS:
125% to 150% of estimated cost of required repairs, if any, as determined by the physical inspection.

Monthly escrows for real estate taxes, property insurance and replacement reserve.

APPLICATION FEE:
Based on estimated underwriting costs for appraisal, architectural/ engineering report, environmental assessment and other loan processing costs.

FINANCING FEE:
Negotiable.

CLOSING EXPENSES:
Standard transaction costs, including legal fees, title insurance and survey.

PRELIMINARY SUBMISSION PACKAGE:
Include the following in your request for a 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.