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.
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LOAN AMOUNT
$5 million to $25 million – exceptions to be made on a case-by-case basis.
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LOAN PURPOSE
Acquisition or refinance, with limited cash out.
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LOAN TERM
5-year fixed rate.
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AMORTIZATION
None; full interest only.
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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.
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PREPAYMENTS
YM(5); YM(2), 3%, 2%, 1%; YM(3), 1%, 1%; YM(2), 1%, 1%, 1%; YM(0) 5%, 4%, 3%, 2%, 1%
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INDEX FLOOR
30 bps from application.
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ASSUMABLE
Not permitted.
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RECOURSE
Non-recourse, with standard carveout provisions required.
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SUBORDINATE DEBT
Not permitted.
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RATE BUYDOWN
Maximum 4%; incremental proceeds subject to all other sizing constraints.
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NET WORTH AND LIQUIDITY
Minimum Net Worth: Equal to the loan amount.
Minimum Liquidity: Equal to 12 months of interest.
Subject to change for entity sponsor or foreign guarantor
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OCCUPANCY
Stabilized property with a minimum of 85% physical occupancy.
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ESCROWS
Real Estate Tax and Insurance required; Replacement Reserve on case-by-case basis.
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PROPERTY ELIGIBILITY
Expected to be largely consistent with agency parameters – to be discussed.
