ELIGIBLE PROPERTIES:
Apartment properties which are at least 3 years old from the date of initial occupancy. Moderate rehabilitation is permitted. Commercial area shall not exceed 20% of the total net rentable area of the project and commercial income shall not exceed 20% of effective gross income.
MAXIMUM LOAN:
The lesser of the following criteria:
| |
DSCR |
Loan Ratio |
| Rental Assistance (≥90% of units) |
1.150 |
87.0% |
| Affordable |
1.176 |
85.0% |
| Market Rate |
1.200 |
83.3% |
For Refinance, the lesser of the above criteria AND the higher of (a) 100% of the eligible transaction costs; or (b) 80% LTV.
For Purchase, the lesser of the above criteria AND the eligible transaction cost multiplied by the applicable LTV ratio.
INTEREST RATES:
Fixed rate determined by market rates at the time of rate lock.
AMORTIZATION:
Up to 35-year, fully amortizing loan.
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.
SUBORDINATE FINANCING:
Allowable, subject to FHA criteria.
PREPAYMENT:
Negotiable.
REPAIRS:
Repair program may not exceed the greater of 15% of the value after repairs, or $6,500 plus applicable high cost percentage per unit. No more than one major building system can be replaced.
WAGE REQUIREMENTS:
Davis-Bacon prevailing wage laws do not apply.
ANNUAL MORTGAGE INSURANCE PREMIUM:
1.0% of the mortgage amount is payable at closing. Thereafter, the MIP is escrowed monthly based on a rate established by FHA. The rate is fixed at loan endorsement.
ESCROWS:
Monthly escrows for property insurance, real estate taxes, reserves for replacement (as determined by FHA) and mortgage insurance premiums.
An initial deposit to replacement reserve and 100% of repair costs (both as determined by FHA) are escrowed from mortgage proceeds.
An additional 20% of the repair cost is required as a completion guarantee from the borrower.
ENVIRONMENTAL ISSUES:
Special rules apply for properties which are located in Flood Hazard Zones as designated by FEMA.
Lead-based paint and asbestos may require abatement iin accordance with FHA requirements.
FHA APPLICATION FEE:
0.3% of the requested mortgage amount payable at the time application
is made to FHA.
CWCAPITAL FEES:
Financing and Placement fees are negotiable. Additional costs vary and include legal, third party reports, and other underwriting costs.
CLOSING EXPENSES:
Standard transaction costs, including legal fees, title insurance and survey.
PRELIMNARY SUBMISSION PACKAGE:
Include the following in your request for a loan quote:
-
Property description and location map.
-
Number of units with breakdown of proposed rents by unit type.
-
Current rent roll and year-to-date operating statement.
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Operating history – prior 3 years, if available.
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Current year operating budget.
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Existing debt and purchase price.
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Resume.
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This is a summary of general program terms, which are subject to change. This is not a commitment to lend.