DUS Mortgage Loans
First-lien permanent mortgage loan financing options for the acquisition and/or refinancing of multifamily properties.
Benefits
- Flexible loan terms
- Competitive pricing
- Certainty of execution
- Speed in processing and underwriting
Eligibility
- Existing, stabilized Conventional Properties, Multifamily Affordable Housing Properties, Seniors Housing Properties, Student Housing Properties, and Manufactured Housing Communities
- Properties with a minimum of five units (50 pad sites for Manufactured Housing Communities)
- Credit-worthy single-asset U.S. borrower with U.S. ownership
- Borrowers may have indirect foreign ownership interests, subject to proper structuring of the borrowing entity and its parent.
Term
5 - 30 years.
Amortization
Up to 30 years.
Interest Rate
Fixed- and variable-rate options available.
Maximum LTV
Varies by asset class and product type.
Minimum DSCR
Varies by asset class and product type.
Property Considerations
Properties must have stabilized occupancy (typically 90%) for 90 days prior to funding. Loan commitments for pre-stabilized properties will be considered on a case-by-case basis.
Supplemental Financing
Supplemental loans are available.
Prepayment Availability
Flexible prepayment options available including yield maintenance and declining prepayment premium.
Rate Lock
30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
Accrual
30/360 and Actual/360.
Recourse
Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy.
Escrows
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.
Assumption
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
