Non-Agency
Lument Flex Multifamily Perm Loan Program
Benefits
- Permanent financing for the acquisition or refinance of stabilized multifamily properties.
- Improved borrower experience; streamlined closing process and refined diligence checklist.
- $5 to $25 million loans.
- 5-year fixed-rate financing, full-term IO.
- Flexible prepayment.
- Rate buydowns available.
-
LOAN AMOUNT
$5 million to $25 million – exceptions to be made on a case-by-case basis.
-
LOAN PURPOSE
Acquisition or refinance, with limited cash out.
-
LOAN TERM
5-year fixed rate.
-
AMORTIZATION
None; full interest only.
-
SIZING CONSTRAINTS
Proceeds to be sized to the lesser of a 1.10x amortizing DSCR, 1.20x IO DCSR, 75% LTV, and 8% NOI DY.
-
PREPAYMENTS
YM(2), 3%, 2%, 1%; YM(2), 2%, 2%, 1%; YM(2), 1%, 1%, 1%; YM(5).
-
INDEX FLOOR
15 bps from application.
-
ASSUMABLE
Not permitted.
-
RECOURSE
Non-recourse, with standard carveout provisions required.
-
SUBORDINATE DEBT
Not permitted.
-
RATE BUYDOWN
Maximum 3%; incremental proceeds subject to all other sizing constraints.
-
NET WORTH AND LIQUIDITY
Minimum Net Worth: Equal to the loan amount.
Minimum Liquidity: Equal to 12 months of interest. -
OCCUPANCY
Stabilized property with a minimum of 90% physical occupancy.
-
ESCROWS
Real Estate Tax and Insurance required; Replacement Reserve on case-by-case basis.
-
PROPERTY ELIGIBILITY
Expected to be largely consistent with agency parameters – to be discussed.
