| LOAN SIZE : |
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$1,000,000 minimum with no maximum. First mortgages only. Cash out for improvements and reserves only. |
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| PROPERTY TYPE : |
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Multi-family and Mixed-use. Income from commercial tenants should not exceed 25% of gross revenue |
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| LOAN TO VALUE : |
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For refinance: Up to 80% of appraised value. For acquisition: Up to 85% of purchase price limited to 80% of appraised value. |
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| DEBT SERVICE COVERAGE : |
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Minimum 1.2x underwritten net operating income. Better pricing is available for higher DSC transactions. |
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| SECONDARY FINANCING: |
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Seller financing may be used for acquisitions in the form of Mezzanine debt only; second mortgages may be allowed by exception. Mezzanine debt can be arranged through third party investors with a minimum of $2,000,000 and a maximum total financing of 90% of project cost. |
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| INTEREST RATES : |
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Interest rates can be locked at application or prior to closing with a 2% rate lock deposit. Rates are set at a margin of 1.5 to 2.5% over the corresponding US Treasury rate for the term of the loan. |
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| TERMS : |
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5/30, 10/30, 15/30 & 30/30 are available. Amortization schedule may be reduced. All loans are typically non-recourse except for standard carve-outs. Rates are fixed for the term of the loan. |
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| MEZZANINE LOAN OPTION : |
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5-10% Additional financing available where projected cash flow is underwritten to debt service permanent financing or refinancing in 2-3 years. |
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| SECOND MORTGAGE OPTION : |
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Subject to 1st mortgage qualification a 2nd mortgage may be arranged at current first mortgage rates for terms running parallel to the 1st mortgage. Note: BCF must have originated the 1st mortgage to qualify for this option. |
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| APPLICATION COSTS : |
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An Application deposit is required to cover all third party report costs, an Application fee and the Processing Fee will be detailed in the BCF Term Sheet. If the loan application is denied any unused funds on deposit and any reports will be forwarded to applicant. |
