The Small Mortgage Loan
product is a streamlined execution that delivers Fannie Mae financing advantages
for loans of $3 million* or less. This lending product offers borrowers fixed or
floating rate loans along with PNC ARCS’ expert handling of underwriting and
closing on properties with 5 or more units. Abbreviated paperwork and processing
make the execution FAST. A wider range of permitted ownership structures makes
it flexible. And reduced costs make it more advantageous to the borrower.
PNC ARCS is one of America’s leading
commercial lenders with an acknowledged expertise in multifamily finance and one
of America’s leading Fannie Mae DUS™ lenders for more than a decade.
As a PNC Real Estate Finance Company,
PNC ARCS is part of PNC Financial Services, one of the largest diversified
financial services companies in America. Now PNC ARCS can provide access to debt
and equity financing, construction loans, permanent financing, forward
commitments, tax credits, direct bond purchase programs, mezz, bridge, Fannie
Mae, Freddie Mac, FHA and Capital Markets. One single source to meet our
borrowers’ needs.
The company is now the single source
for all real estate financing across the full range of commercial property
types.
Beyond the benefits of any specific lending product, PNC ARCS’ experience, expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. No one delivers more.
*$5 million maximum in the Baltimore, Washington DC, Boston, Chicago, New York, Los Angeles, Riverside, Sacramento, San Diego, San Francisco, San Jose and Seattle Metro Areas. Other counties in NJ, MD, VA, NH and CA also qualify. Please contact your loan representative for more information.
Product Overview
Eligibility DUS quality properties excluding coops, manufactured housing communities, student housing and assisted living properties
Loan Amounts $1.5 million minimum
$3 million maximum
$5 million maximum in eligible markets
Term/Amortization 5 to 30 year term
Up to 30 year amortization
Partial-Term Interest Only permitted on Tier 3 and Tier 4 transactions with a 10 year term or greater
Interest Rates Fixed or adjustable
Debt Service Coverage Ratio Fixed: 1.15x - 1.20x min. (varies by market)
ARM: 1.00x minimum
Loan to Value 75% to 80% maximum depending on market
Personal Recourse Recourse may be required depending on loan leverage and market
Ownership Structure Individual and cotenant borrowers are acceptable. Single asset entity is not
required.
Prepayment Yield Maintenance, Defeasance or Graduated Prepayment
Origination Fee 1%. $20,000 minimum.
Commitment Fee 2% refundable fee
1% available with some restrictions
Third Party Includes legal, limited scope appraisal, engineering and environmental fees.
Minimum Occupancy Requirement 90% sustained for 90 consecutive days
Replacement Reserve Impounds Typically waived
Taxes and Insurance Impounds Assumability Assumable with lender approval and a 1% fee
Supplemental mortgages Available after 1 year. Up to 2 available, plus 1 more upon sale and assumption. $500,000 minimum.