- Attractive low-cost financing.
- Convertible to fixed-rate.
- Flexible loan terms and prepayment options.
- Ability to choose interest rate cap provider.
- Existing, stabilized Conventional properties, Multifamily Affordable Housing properties, Seniors Housing properties, Student Housing properties and Manufactured Housing Communities.
- Mortgage Loans secured by properties undergoing Moderate Rehabilitation may be eligible on a case-by- case basis.
- Credit Enhancement Mortgage Loans and Substantial Rehabilitation are not eligible.
- Loans of $25 million or more.
5, 7 or 10 years.
Up to 30 years.
INTEREST RATE ADJUSTMENTS
Interest rate adjusts based on changes to the underlying Index and is equal to the Index plus the Margin. No limit on rate changes.
1.00x, using a DSCR calculated based on a variable underwriting rate. Mortgage loan amount shall not exceed that of a fixed-rate loan of similar terms.
Maximum 30-day commitments.
Supplemental loans are available.
After a one-year lock-out period, loans may be voluntarily prepaid. Lender selects the option of a declining prepayment premium or a 1% prepayment premium. No prepayment premium required during the last 3 months of the loan term.
VARIABLE UNDERWRITING RATE
Sum of (i) the Index, plus (ii) the investor spread, guaranty fee and servicing fee (the “Margin”), plus (iii) the interest rate cap escrow expressed as a percentage (if the cap term is shorter than the loan term), plus (iv) 3%, plus (v) the amortizing constant for that built-up rate.
30-day Average SOFR.
INTEREST RATE CAP
- Structured ARMs have no built-in periodic or lifetime caps. Instead, the Borrower must purchase an interest rate cap from an approved interest rate cap provider.
- The term of the initial interest rate cap need not be equal to the term of the Mortgage Loan but must be for at least 5 years.
- If the Mortgage Loan term is longer than the interest rate cap term, the Borrower must escrow monthly for the purchase of the next interest rate cap.
INTEREST RATE FLOOR
The interest rate shall never be less than the Margin.
This sheet sets out the general guidelines of a loan program and is designed solely as an aid to prospective borrowers and other clients. It does not represent or imply a contract or a commitment to lend funds. A commitment to lend funds may only be made by a written letter issued by NewPoint to a prospective borrower. This term sheet is subject to change at any time without notice at the sole discretion of NewPoint Real Estate Capital LLC.