Loan Amount: $1,000,000 minimum; $20 - $25,000,000 maximum. |
| Loan Term: 7 and 10 year loan terms. |
Interest Rate:
1.50% to 2.10% over 3-month LIBOR, depending on pricing tier. The initial adjustable interest rate will be determined ten days prior to closing. The adjustable rate reset will occur every 90 days. Permanent note rate will be fixed at prevailing market rates at the time of conversion. |
| Amortization: Up to 30 years. |
Prepayment:
The ARM loan is not prepayable in the first year. After the first year, the loan is prepayable in full at any time; subject to a fee maintenance formula. The prepayment premium will be waived for any loans converting to a fixed rate loan. |
Conversion Feature:
Option to convert the ARM loan to a 7 or 10 year fixed rate loan in years 2 through 5. |
Recourse:
Non-recourse, except for standard lender carveouts. |
Borrower:
Generally, a single asset entity is required. For loans below $3 million, other forms of ownership may be acceptable. |
Debt Service Coverage: Minimum 100%, based on the lifetime interest rate cap. |
Loan to Value:
Up to 80% of appraised value for a refinancing transaction. For an acquisition, up to 80% of the purchase price and approved closing costs of up to 3% of the purchase price. |
Rate Caps:Periodic:
1% per rate change period.
Lifetime: 3% over the initial fully indexed rate. |
Subordinate Financing:
No subordinate financing is permitted while the loan is in the adjustable rate mode. Fannie Mae funded second mortgages of $1,000,000 or more available after the loan converts to a fixed interest rate. |
Occupancy:
Properties must be 90% physically occupied at loan funding and for the 90 day period prior to commitment. Exceptions will be considered for properties above 85% occupancy on a case-by-case basis. |
Assumability:
Yes, subject to NYCL approval and the payment of a processing fee and a 1% assumption fee. |
Reserves:
Tax and insurance escrows are required. Replacement reserves and repairs required as determined by the engineer's report and can be waived for properties with a loan to value of less than 65%. |
Application Fee:
$12,500. Covers the cost of all third party reports, travel expenses and other out-of-pocket expenses. |
| Financing Fees: 1% of the loan amount. |
Timing:
Commitments issued in 45 days or less. |
Pricing:
Contact your NYCL representative for a current price quote. |
