Loan Limits Loans up to $5.0 million. Minimum loan amount is $500,000 ($750,000 in California). Debt Service Coverage (DSC)
Minimum DSC is 1.20x.
The qualifying income for Purchase & Refinance transactions will be underwritten to the lower of: (i) current year to date annualized net operating income; (ii) the actual net operating income for the most recent calendar year (Lender may substitute with the current year to date of at least six months upon satisfactory mitigating factors, such as extensive borrower experience/liquidity, anomaly occurrences, lower leverage); (iii) the underwriter’s current net operating income; or (iv) the apprai
Minimum Purchase Equity
For properties purchased less than 2 years, the value will be the lower of the following:
Original purchase price plus any verifiable capital improvements, or
Current appraised value.
Properties purchased between 1 and 2 years prior, max. cash out is 10% of loan amount.
Amortization/Term Fully amortizing up to 30 years No Balloon terms required. Indices 6 Mo. LIBOR Eligible Properties
A,B,C + Properties
5+ Unit Multi-Family Units
Mobile Home Parks with 15+ pads
Limited Mixed Use on case by case basis
Non-Eligible Properties
Single Room Occupancy Units
Rehabilitation or Renovation
Under Capitalized Properties
Proprieties where liquor is served to customers
Proprieties where a dry cleaning plant is on the premises
Proprieties without a residential component
Management
Properties to be in good condition.
Deferred maintenance corrected via Escrow Holdback.
Successful and proven Management capabilities required.
Prepayment
Fixed declining (no yield maintenance on defeasance).
Maximum of 0% principal reduction is allowed per year.
Assumable Lender will consider a one-time assumption request during the life of the loan.
Review Fee $10,000(non-refundable) within 1-st year
Review Fee $10,000(non-refundable) after 1-st year
Final transfer Fee equal to 1% of the outstanding balance
Secondary Financing
Not allowed on purchase transaction
Case – by - Case on refinance transaction
Recourse
Full Recourse over 75% LTV
Guarantee drops to 50% with LTV below 75%
No Recourse at 50% LTV
Tax/Insurance Impounds If loan is 50% or greater, impounds are required. Replacements Reserves Impounds May be instituted for correction of existing deferred maintenace or unproven
management capabilities, or chronic undercapitalized buildings. Insurance Requirements A satisfactory ALTA Survey and ALTA lender's title insurance policy will be
required for all properties by Bank of Internet USA preferred vendor. Insurance for Fee Simple interest, no Leaseholds.
Hazard and Liability insurance policy satisfactory to the Lender will also be required (Flood
and earthquake may be required on a case-by-case basis). Third Party Reports
An Appraisal will be ordered by Bank of Internet USA using a bank-approved appraiser. Format will be determined
by loan request parameters.
Environmental Assessment will be conducted to determine the environmental risk to the
subject property. If another environmental report is required, the borrower will be
notified prior to ordering and incurring of additional fees.
Property Inspections will be ordered by Bank of Internet USA using a bank-approved inspector.
Borrower is not charged. Lender Fees/Closing Costs
Fixed Loan Processing Fee Mobile Home Park $6,000
Fixed Loan Processing Fee Apartments $4,000
Title Insurance At Cost
Escrow/Closing Fee At Cost
*Upon the acceptance by Bank of Internet USA of a complete
loan application and receipt of Good Faith Deposit "GFD", full processing of your loan request will
commence.The "GFD" will cover any of Bank of Internet USA's out-of-pocket expenses incurred in the
processing of your loan, including but not limited to, appraisal, credit, environmental report and
site inspections. If Bank of Internet USA denies your loan request, any excess "GFD" funds, as well as
reports purchased, will be returned to you. Lending Area/Max Loan To Value
Locale Description
State
Purch Mortg.
Rate&Term Refi.
Cash Out Refi.
5-8 Units
All Areas
CA%
80%
80%
75%
80%
All Areas
AZ%
80%
80%
75%
80%
All Areas
CO%
80%
80%
75%
80%
All Areas
NV%
80%
80%
75%
80%
All Areas
OR%
80%
80%
75%
80%
All Areas
TX%
80%
80%
75%
80%
All Areas
UT%
80%
80%
75%
80%
All Areas
WA%
80%
80%
75%
80%
more Lending Areas...
