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BK-0910597

3 MaxExpress

The 3maxExpress is a streamlined product that delivers Fannie Mae financing advantages for loans of $3 million or less.  This lending product offers borrowers fixed or floating rate loans along with Venture expert handling of underwriting and closing on properties with 5 or more units.  Abbreviated paperwork and processing make the execution FAST.  A wider range of permitted ownership structures makes 3MaxExpress more advantageous to the borrower.

Product Overview:

 (For a Printable PDF of this program, please click here)

Eligibility                                                                                             DUS quality properties excluding co-ops, manufactured housing communities, seniors housing, and affordable housing

Loan Amounts                                                                                        $2 million minimum.  $3 million maximum

Term/Amortization                                                                                5 to 30 year term.  Up to 30 year amortization

Interest Rate                                                                                        Fixed or Adjustable

Debt service coverage ratio                                                                1.25x minimum (fixed)                                                                            1.00x minimum (ARM)

Loan to value                                                                                     80% maximum

Personal Recourse                                                                                Non-recourse with standard "Carve-Outs" and Key Principals obligations

Ownership Structure                                                                            Individual and cotenant borrowers are acceptable.  (Single asset entity is not required)

Prepayment                                                                                          1 year lockout with 1% minimum for the loan term (ARM); yield maintenance with 1% minimum or defeasance (fixed)

Origination Fee                                                                                    1% / $20,000 minimum

Commitment Fee                                                                                    2% (refundable)

Third Party Fees                                                                                    Includes legal, appraisal, engineering, and environmental reports.  Seismic reports and survey may also be required

Minimum Occupancy Requirement                                                        90% sustained for 90 consecutive days (85% acceptable for special circumstances)

Replacement reserve impounds                                                           Required - not less than $200/unit (waiver considered for special circumstances)

Taxes and Insurance Impounds                                                            Required (may be waived for low leverage transactions)

Assumability                                                                                        Assumable with lender approval and a 1% fee

Supplemental Mortgages                                                                    Available after 1 year (up to two available, plus one more upon sale)

Venture Placement Fee                                                                        1% to 2% dependent on property