FANNIE MAE DUS
Delegated Underwriting and Servicing Multi-Family Loans currently provide the lowest rates possible for Multi Family properties and are very much in favor among investors borrowing over 3 Million dollar loan amounts in today's credit crisis. Loans can be slightly taylored to your individual needs. These loans are non-recourse, except for standard carve outs. These loans have a Yield Maintenance Pre-payment penalty which is a make who Example -Your loan closes with the 10 year Treasury at 4%. 5 years from closing, you want to refinance because the treasury is at 3%. Your prepayment amount would equal 1% or the spread between the closed treasury rate and the current treasury then based on the scheduled amortizing principal arrangement.
Note: This is the only secondary market market multi family loan allowing a second mortgage or even a third institutional mortgage in the event of an asuumption when your buyer does not the the additional funds to close.
LOAN
SIZES
Minimum is $3,000,000 -Maximum Unlimited
Below $3,000,000 loan Amounts
Terms
3, 5, 7,
10 15, 18, 30 Year Fixed Terms with up to 30 Year Amortizations
85% Combined Loan To Value with a Purchase Supplemental Loan 400 basis points over the 10 Year Treasury
Assumable for a 1% fee (Can be Assumed Twice) Purchasers Can Secure Secondary or Supplemental Financing to fill out LTV(Loan to Value Ratio) to 80%.
80% LTV (Secondary Financing is Permitted upon 12 Mos Seasoning Rates as low as 2.5% over the 10 Year Treasury)
Debt Service Coverage Ratios 1.20 to 1 (Rents Underwritten to Market)
BENEFITS
Low Rates
Assumable
Flexibility in Terms
Low Debt Service Ratio Requirements
30 Year Amortizations
10 Year Fixed Periods
Interest Only Availablity up to 5 Years
Non-Recourse
B and C Grade Properties are a Great Fit
215 - 240 Basis Points over the 10 Year Treasury Note (see Rates )
CONSIDERATIONS
How long will you own the property?
If you plan to sell before 10 years, will the 10 year treasury be higher than at the time of closing?
Third Party and Lender legal fees of $15,000 before Title Insurance & other escrow fees.
