Freddie Mac's Capped ARM provides adjustable rate financing for the acquisition, refinance, and moderate rehabilitation of multifamily properties and is ideal for borrowers who expect a decrease in rates or those who want the flexibility of a short-term loan.
The
Capped ARM provides time and cost savings with Freddie Mac's built-in
interest rate cap while offering competitive, market-driven pricing that
provides the lowest rates and spreads to the highest quality loans. The
Capped ARM also provides flexibility in a broad range of loan terms: 5 to
30 year terms, up to 30 year amortization, supplemental mortgages on an adjustable or fixed rate basis, and the option of converting to a fixed rate with limited underwriting at conversion.
Beyond the benefits of any specific lending product, PNC ARCS' expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. And with specialists in capital markets, affordable housing, seniors housing, student housing, manufactured housing communities, FHA multifamily, as well as mezzanine/bridge financing, we can help meet your most critical financial and timing needs. No one delivers more.
Product overview
Eligibility Garden, mid and high-rise apartments, co-ops and senior housing properties
Loan amounts
$3 million minimum. $100 million maximum.
Term/amortization 3 to 10 year terms
Up to 30 year amortization available
(interest only is available on a case-by-case basis)
Interest rate
Floating based on 1 or 3 month LIBOR
Personal recourse None, except for typical lender "Carve-Outs"
Debt service coverage 1.25x minimum
Loan to value 80% maximum (7+ year terms)
75% maximum (less than 7 year terms)
Interest rate cap Included in rate
Prepayment 1 year lockout with 1% for the loan term or a declining prepay schedule
Origination fee Required (varies by loan amount)
Commitment fee Required (refundable)
Third party fees Required (varies by loan amount)
Minimum occupancy requirement
85% for 90 days prior to loan closing
Replacement reserve impounds Typically required
Supplemental mortgages One per year on qualifying
properties
Available only in select regions. Contact us to find out if your
property qualifies.