Good news – rates are down. After seeing the 10-year Treasury ramp up about 50 bps in the last 6 weeks of 2009, we’ve seen a 20 bp decline this month.
Below are today’s rates for select apartment loan programs – all loans are a case-by case basis.
Loans ~$2,000,000+ (DUS Fannie)
5/30 4.85% non recourse
7/30 5.43% non recourse
10/30 5.68% non recourse
70-80% LTV, non recourse, assumable, can do supplemental financing in future to leverage back up for a buyer (combined with the assumption this avoids the prepay penalty)
Subtract ~20 bps for less than 65% LTV and 1.35+ DCR, cash-out okay
Loans ~$1,000,000 to $3,000,000+ (Small Fannie program)
5/30 5.25% non-recourse available
7/30 5.80% non-recourse available
10/30 6.10% non-recourse available
70-80% LTV, for loans less than 65% LTV and 1.35+ DCR – subtract ~20 bps, assumable, if non-recourse we can do supplemental financing in future to leverage back up for a buyer (combined with the assumption this avoids the prepay penalty), cash-out okay
*Loans under $1,000,000 may be available and would be priced slightly higher
Loans $500,000 to $2,000,000
3/30 6.25% recourse, low cost, soft prepay after 12 months
5/30 6.75% recourse, low cost, soft prepay after 12 months
This lender’s sweet spot in $500,000 to $1,000,000 loan size.
We also have other options for low leverage loans, loans that don’t restrict secondary financing, no prepay, etc.
The above Fannie Mae programs are also available for high quality mobile home parks (pricing may be slightly different, however).
Brandon Rogers
Vice President, Shareholder
Terrix Financial Corporation
1777 S. Harrison St., Suite 301
Denver, CO 80210
303-757-7800 (ph)