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BK-0910597
The LIBOR based Adjustable Rate Mortgage (ARM) product provides flexible financing for borrowers seeking a variable rate mortgage. The ARM features a conversion option, a wide range of interest rate caps, two prepayment options (1% or declining schedule), and two index options (1 or 3 month LIBOR). Supplemental mortgages are also available on a adjustable or fixed rate basis.
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Eligibility Standard multifamily properties. Interest only and Seniors Housing loans may be eligible on a waiver basis
Loan Amounts $2 million minimum. No maximum
Term/Amortization 5, 7 or 10 year term. Up to 30 year amortization
Interest Rate Floating based on 1 or 3 month LIBOR
Debt service coverage ratio 1.0x minimum at the cap rate as determined by the borrower
Loan to value 77.5% maximum
Personal recourse Non-recourse with standard "Carve-Outs" and Key Principals obligations
Prepayment 1 year lockout with 1% for the loan term or a declining prepay schedule
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 $150/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