ARM 7-6

Learn more about our 7-year variable-rate mortgage with an embedded cap and an option to convert to fixed-rate.

Term Sheet (PDF)


  • Attractive low-cost financing
  • No minimum or maximum loan size
  • Maximum interest rate is set at rate lock
  • Convertible to a fixed-rate loan with minimal re-underwriting


  • Existing, stabilized multifamily properties, including: Conventional, Multifamily Affordable Housing, Seniors Housing, Student Housing, and Manufactured Housing Communities
  • Loans for acquisition or refinance


7 years


Up to 30 years.

Interest Rate Adjustments

Adjusts based on changes to the underlying Index and is equal to the Index plus the Margin.

Maximum LTV


Minimum DSCR

1.00x at the maximum lifetime interest rate. Mortgage loan amount shall not exceed that of a fixed-rate loan with similar terms.

Rate Lock

30-day commitments.


1 month LIBOR.

Supplemental Financing

Supplemental loans are available.

Prepayment Availability

No prepayment first year, 1% prepayment premium thereafter. No prepayment premium during the last 3 months of the loan term. When refinancing into a fixed-rate product with Fannie Mae, the prepayment premium may be waived under certain conditions

Interest Rate Cap

Maximum monthly interest rate adjustment of 1% up or down. Maximum lifetime interest rate to Borrower capped at 6%, plus the guaranty fee, plus the servicing fee.

Interest Rate Floor

The interest rate will never be less than the Margin, which is the sum of the investor spread, the
guaranty fee, and the servicing fee.

Conversion to Fixed Rate

Subject to the terms of the loan documents, the loan may be converted to a fixed-rate loan on any rate change date beginning on the first day of the second loan year and ending on the first day of the sixth loan year.

  • No prepayment premium is charged at the time that the Mortgage Loan converts.
  • Conversion requires minimal re-underwriting; lender determines that the current Net Cash Flow can support the new fixed-rate.
  • No increase in the loan amount; may be eligible for a Supplemental Loan.




Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy.


Replacement reserve, tax, and insurance escrows are typically required.

Third-Party Reports

Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.


Loans are typically assumable, subject to review and approval of the new borrower's financial capacity and experience.