ELIGIBLE PROPERTIES:
Existing Fannie Mae DUS loans originated by CWCapital.
This program allows current borrowers additional financing on existing loans up to original underwriting parameters. The borrower is eligible to receive supplemental loans 12 months or later after initial loan closing of the first mortgage.
LOAN TYPE:
Fixed or adjustable-rate mortgages, which are cross-collateralized and cross-defaulted with the first mortgages.
LOAN TERM:
Minimum loan term of 5 years with two types of supplemental mortgages available:
- Coterminous: mortgage term is coterminous with the term of the existing Fannie Mae first mortgage. The first mortgage must have at least five years remaining.
- Non-coterminous: mortgage term is at least two years longer than the remaining term of the existing Fannie Mae first mortgage.
MAXIMUM LOAN:
Combined loan-to-value and debt service coverage must meet current Fannie Mae Tier requirements.
INTEREST RATES:
Rates vary by loan-to-value ratio, debt service coverage and property quality.
AMORTIZATION:
Up to 30 years.
PERSONAL RECOURSE:
None, except for standard exceptions to non-recourse, which are the responsibility of the Key Principal(s).
ASSUMABILTIY:
Assumable, subject to CWCapital approval and a 1% transfer fee.
PREPAYMENT:
Yield maintenance or defeasance options.
SUBORDINATE FINANCING:
Additional supplemental loans may be available.
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, and title insurance update.
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