Program A+ Hybrid
INCOME PRODUCING REAL ESTATE
INCOME QUALIFYING BUSINESS LOAN
|LOAN AMOUNT||- Minimum: $125,000
– Maximum: $1,000,000
|Loan Terms||Fixed-rate terms of 1, 3 or 5 years with 15 year maturity|
|Maximum Amortization||30 Years with balloon at 15 year maturity|
|RATES||1-Year 6.5% fixed||3 Year 6.75% fixed||5-Year 7% fixed|
|Floor Rate = initial start rate
|PREPAYMENT PENALTY||1 Year (5,3)
5% Months 1-12
3% Months 13-24
|3 Years (3,2,1)
3% Months 1-12
2% Months 13-24
1% Months 25-36
|5 Years (5,4,3,2,1)
5% Months 1-12
4% Months 13-24
3% Months 25-36
2% Months 37-48
1% Months 49-60
|ELIGIBLE PROPERTY TYPES||LTV||DSCR|
|Multifamily: non-owner occupied only||65||1.25|
|Professional office space||60||1.3|
|Retail store- Strip/free standing||60||1.35|
|PERSONAL GUARANTEES||Personal guarantees are required on all loans|
|MAXIMUM COMBINED LOAN-TO-VALUE
(See attached grid for maximum CLTV by individual property types)
|See Program Matrix for LTV by property type|
|LENDER FEES||Broker Origination Fee: 2%
|LIEN POSITION||First liens only|
– Non owner-occupied
|CASH OUT REFINANCES||Maximum cash to borrower is $150,000|
|MINIMUM DEBT COVERAGE RATIO||- All properties subject to debt service coverage ratio minimums.
– See Program grid for DSCR by property type.
– For DSCR purposes, rent for owner-occupied units will be determined by current market rents.
– DSCR on business income will also be a method for determining eligibility.
– By exception, personal DTI ratios may also be considered.
|All mortgages must be current.|
|- All accounts must be paid “As Agreed”. Minimum FICO score 700.
– All APEX credit scores must be in the 700’s. No current delinquencies.
|CHARGE OFFS/COLLECTIONS||Charge offs are not allowed in the prior twenty-four (24) month period.|
|BANKRUPTCIES||Bankruptcies are not allowed in the prior five (5) year period.|
|INELIGIBLE PROPERTY TYPES||
|APPRAISALS||An APEX obtained appraisal is required on all properties|
|ENVIRONMENTAL||- All loans must have an environmental questionnaire completed.
- All loans will require environmental due diligence.
|AGE OF DOCUMENTATION||- Credit documentation cannot be more than 90 days old.
– Appraisals must be less than 60 days old at time of closing.
|UNDERWRITING DOCUMENTATION REQUIRED||1. Summary sheet
2. COMPLETED 1003 application
3. Credit report
4. Mortgage broker agreement