Flexible Choice Bridge

Existing, stabilized MAH Properties.

7 years (10-year SARM Loan option available).

No minimum or maximum (except SARM Loans that are not resyndication transactions must be $5 million or greater).

Up to 30 years.

Up to 80%.

• ARM 7-6 Loan – 1.00x using the maximum lifetime interest rate.
• SARM Loans – 1.00x using a variable underwriting rate equal to the sum of (i) the Index, plus (ii) the investor spread, guaranty fee, and servicing fee (the “Margin”), plus (iii) the interest rate cap escrow expressed as a percentage (if the cap term is shorter than the loan term), plus (iv) 3%, plus (v) the amortizing constant for that built-up rate.

• Loan is locked-out from prepayment for first 12 months (a 6-month lock-out option may be available with Fannie Mae prior approval), with a 1% prepayment premium required thereafter. No prepayment premium during the last 3 months of the loan term. When refinancing into a fixedrate product with Fannie Mae, the prepayment premium may be waived under certain conditions.
• SARM Loans also offer an option of a one-year lock-out, then declining prepayment premium of 4% second year, 3% third year, 2% fourth year, 1% thereafter (not available with the 6-month lockout option).

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

30-day commitments available.

30-day average SOFR.

• ARM 7-6 Loans have a maximum monthly interest rate adjustment of 1% up or down. The maximum lifetime interest rate to the Borrower is capped at 6%, plus the guaranty fee and the servicing fee.
• SARM Loans have no built-in periodic or lifetime caps. Instead, the Borrower must purchase an interest rate cap from an approved interest rate cap provider with a minimum initial cap term of 5 years.

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 after the lockout period and ending on the last day of the prepayment period.