"Silver Hill â€“ Multifamily Small Loan Financing"
JSMALLestOAN* - Multifamily Small Loan Financing The JS MultiCapital Small Multifamily Loan Program offers flexible loan terms and streamlined processing for loans $100,000 to $1,500,000. Some Real Estate Investors need a source of financing: a) when they do not have prior experience This Multifamily Small Loan Program will lend to owning apartment buildings. experienced and inexperienced Borrowers. Interest rates are based on desired loan terms and credit score. b) when their credit score is not perfect. This Multifamily Small Loan Program will lend to Borrowers with less “verifiable / qualifiable income documentation” as long as the property cash flows. Multiple factors (such as income, liquid assets, cash flow) are considered in determining a final credit tiering. Interest rates are adjusted based on the Borrower’s credit score: A credit = 680+ A - credit = 640+ (add .750% to rate/margin) B credit = 580+ (add 1.500% to rate/margin) c) when the property does not cashflow. This Multifamily Small Loan Program will lend on the strength of the Borrower. The typical debt coverage method is not the ONLY analysis completed. The risk coverage method is also evaluated. d) when the property may be sold during All loans are assumable for a 1% fee subject to Borrower the fixed period of time. qualification with no charge at the time of the assumption. STANDARD TERMS LENDER REQUIREMENTS Minimum and Maximum Loan: $100,000 Minimum to $1,500,000 Maximum Maximum Loan-To-Value: Up to a maximum of 90% for A credit borrowers Up to a maximum of 85% for A – credit borrowers Up to a maximum of 75% for B credit borrowers Mortgage Usage: Refinancing or Purchase, No construction loans. Loan Terms: 30 Year Term (Fixed For 6 Months) 30 Year Term (Fixed For 2 Years) 30 Year Term (Fixed For 3 Years) 30 Year Term (Fixed For 7 Years) 30 Year Term (Declining Fixed Rate) After fixed period, the interest rate will adjust to __% (to be quoted) + PRIME with a 2%, 1.5%, 6% CAP. Pricing is tiered and based on the risk attributes of loan and loan size. Improved pricing available for low loan-to-value and high debt service coverage loans. The Borrower can buy down the interest rates – for each additional point paid up front, the rate and the margin will decrease by .375%; a maximum of .75% is allowed. Amortization Term: 30 Years Minimum DSC: No Minimum; 1.00 preferred Recourse: Required PAGE 2- Standard 5% for 5 Years (5%, 5%, 5%, 5%, 5%, 0%...) Prepayment Schedule: Other flexible options are available that can increase or decrease the interest rate if selected. Lending Criteria: Nationwide Property Types: Multifamily apartments with a minimum of 5 units. Mixed Use properties with a residential component can be considered. Special considerations for owner occupied mixed use properties making it very competitive. Eligible Borrowers: Creditworthy Borrower(s) Tax and Insurance Escrows: Collection of tax and insurance escrows Property Stabilization: Financing based on risk factor to Lender and not dependent on current or historical occupancy. Replacement Reserves: No replacement reserves Completion Reserves: Collection of completion repair escrows will be required if repairs are greater than 1% of the loan amount. All life and safety issues must be completed prior to loan closing Appraisals: Lender obtains – Borrowers Pays All Out-Of-Pocket Expenses Other 3rd Party Costs Borrowers Pays All Out-Of-Pocket Expenses (Environmental, Survey, Title, Legal): Closing Costs: $500 lender fee paid at closing; $750 lender fee if monthly mortgage payment is not deducted automatically. $1000 in Ancillary Fees. Application Fee: $0 Origination Fee:* Origination fees are competitive and will vary based on loan size. A $1000 good faith deposit is required at application which will be credited towards the origination fee at closing. Minimum Liquidity Requirements: 2 months Principal + Interest + Insurance in post closing liquidity. Rate Lock: Locked at letter for 45 days for 6 Month, 2 Year and 3 Year programs. Borrower can lock at letter for 7 Year and Declining Fixed Rate programs with a .125% increase to the rate/margin. Closing: 45 to 60 days JS MultiCapital Corporation provides this small balance loan financing nationwide through a relationship with Silver Hill Financial. Required Submission Items: __ Loan Submission Form __ Loan Supplemental Form and 1003 Application __ 2 Yrs. Personal Tax Returns __ Tri-Merge Credit Report __ Current Rent Roll __ Profit and Loss Statement __ Copy of fully executed Purchase Agreement, if acquisition For additional information, call (216) 765-9000 - Kathryn Cassidy (ext. 4) / Jeff Shafer (ext. 1).