Posted by DMcGehee.SF on June 01, 2009 at 21:42:00:
In Reply to: Apartment Loan-Lender Requirements? posted by Edwin on June 01, 2009 at 11:54:23:
I've noticed that many lenders have tightened their apartment standards considerably. Many lenders are placing more focus on the borrower's financial strength (ie. liquidity, lendable equity, etc.), track record (ie. management history). Very similar to the early 2000 bust, lenders seem to not just focus on the fundamentals of the property but are looking at the bigger picture.
There is still a huge disparity amongst lenders depending on property class, market etc. but what I've seen recently for apartment financing is at least 25%-45% down, dcr of 1.15-1.25, underwriting based on '08 actuals / YTD income and a lot more lenders requiring personal guarantees.
Rates see reasonable given the vanishing act of the big guns like the conduits. I'm still seeing 30 year Amorts but haven't seen terms past 10 years.
What market are you in? How many units?
- Re: Apartment Loan-Lender Requirements? Edwin 08:28:45 06/02/09 (0)