Rates are good!
We have a couple lenders aggressively looking for apartment loans. Below are some rates and basic parameters.
National Correspondent Lender
5/30 ~ 3.28% – 3.68%
7/30 ~ 3.90% – 4.30%
10/30 ~ 4.51% – 4.91%
Up to 80% LTV
Non Recourse available
Low costs
Stepdown Prepay – with flexibility
Below is a good Bank Small Loan Program
– Metro Denver, Lakewood, Colorado Springs, Aurora, other areas where Chase will not lend.
Small Apartment – Bank-type Program $750,000 – $3,000,000
5/30 3.375% – 3.875% (3.5% – 3.625% at 70% LTV)
7/30 3.750% – 4.25% (3.875% – 4.0% at 70% LTV)
Up to 75% LTV
Rates may be slightly higher for Colo Spgs
step down prepay starting at 3%
low costs (total lender costs between $2000 – $3500 processing, appraisal, etc – determined by LTV),
Lender is looking for higher quality properties
For “appearance and location-challenged” properties
5/30 ~ 3.6% – 4.05%
7/30 ~ 4.15% – 4.60%
10/30 ~ 4.9% – 5.35%
Up to 75% LTV (70% cash out)
Very reasonable costs
Stepdown Prepay
Less picky about appearance and location
For borrowers who can live with lower leverage and a 25 yr amortization, but want non-recourse and want to rate lock up front :
Life Company Apartment Program ($2,000,000+)
~65% – 70% LTV max
5/25 from ~3.31%
10/25 from 4.25%
Rate locks at application!
Step-down prepay may be available
Non recourse
Terrix controls appraisal – NO BLIND BID