{ "name": "Commercial.Mortgage program rules", "description": "Commercial mortgage programs with their published limits (each figure linked to its source and date), spread range in basis points over a named index series, and an indicative rate at the build-time index reading. Indicative only; not a quote or an offer to lend.", "publisher": "Janover Capital LLC", "license": "CC BY 4.0", "generated_at": "2026-11-01T17:34:21.391Z", "index": { "UST5": { "label": "5-year Treasury", "value": 4.71, "date": "2026-10-30", "source": "U.S. Department of the Treasury, daily par yield curve rates", "url": "https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve" }, "UST7": { "label": "7-year Treasury", "value": 4.8, "date": "2026-10-30", "source": "U.S. Department of the Treasury, daily par yield curve rates", "url": "https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve" }, "UST10": { "label": "10-year Treasury", "value": 4.94, "date": "2026-10-30", "source": "U.S. Department of the Treasury, daily par yield curve rates", "url": "https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve" }, "SOFR": { "label": "SOFR (overnight)", "value": 3.94, "date": "2026-10-29", "source": "Federal Reserve Bank of New York", "url": "https://www.newyorkfed.org/markets/reference-rates/sofr" }, "SOFR30": { "label": "30-day average SOFR", "value": 3.89857, "date": "2026-10-30", "source": "Federal Reserve Bank of New York", "url": "https://www.newyorkfed.org/markets/reference-rates/sofr-averages-and-index" }, "PRIME": { "label": "Bank prime rate", "value": 7, "date": "2026-10-29", "source": "Board of Governors of the Federal Reserve System, H.15 Selected Interest Rates", "url": "https://www.federalreserve.gov/releases/h15/" } }, "live_rates": "/api/rates", "formula": "indicative_rate = index_value + spread_bps / 100", "programs": [ { "slug": "agency-supplemental-loans", "name": "Agency supplemental loans (Fannie Mae and Freddie Mac)", "url": "/loans/agency-supplemental-loans/", "family": "agency", "lender_type": "agency", "eligible_property": [ "multifamily", "affordable-housing", "senior-housing" ], "purposes": [ "cash-out" ], "rate_type": [ "fixed", "floating" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": 80, "max_ltv_cash_out": null, "max_ltv_alt": 70, "min_dscr_alt": 1.3, "combined": true, "max_ltc": null, "min_dscr": 1.25, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "yield-maintenance", "varies" ], "summary": "A second loan from the same agency, placed behind an existing Fannie Mae or Freddie Mac first loan, that pulls out equity without paying off the first loan or its prepayment premium. Sized on the combined debt of both loans.", "recourse_note": "Documented on the agency’s current loan forms and tied to the first loan’s documents, which on agency loans are non-recourse apart from standard carve-outs.", "prepayment_note": "Freddie Mac fixed-rate supplementals are yield maintenance loans; floating ones follow the floating term sheet. Plan the exit for both loans together, since a sale or refinance pays off both.", "best_for": [ "Owners with a low-rate agency first loan who want equity out without giving up that rate or paying its prepayment premium.", "Properties whose income and value have grown since the first loan closed.", "Funding capital work or a new acquisition while keeping the existing loan in place." ], "avoid_if": [ "The first loan is too new or too close to maturity for the seasoning window.", "The first loan is not an agency loan; a bank, life company or CMBS first lien has no supplemental path here.", "The blended rate of both loans is higher than a full refinance after its prepayment cost." ], "compare_with": [ "fannie-mae-multifamily-loans", "freddie-mac-optigo-loans", "mezzanine-loans", "preferred-equity", "fha-223f-loans" ], "facts": { "maxLtv": { "id": "agency-fhlmc-supp-max-ltv", "value": 80, "unit": "percent", "display": "80% combined LTV at 1.25x (7-year term)", "as_of": "2025-11", "source": "Freddie Mac Multifamily, Optigo Supplemental Loan Term Sheet", "url": "https://mf.freddiemac.com/docs/product/supplemental.pdf" }, "maxLtvAlt": { "id": "agency-fnma-supp-max-ltv", "value": 70, "unit": "percent", "display": "as high as 70% LTV, depending on asset class and use of proceeds", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, Supplemental Mortgage Loans Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/tools-existing-loans/supplemental-mortgage-loans-term-sheet" }, "minDscrAlt": { "id": "agency-fnma-supp-min-dscr", "value": 1.3, "unit": "x", "display": "as low as 1.30x", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, Supplemental Mortgage Loans Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/tools-existing-loans/supplemental-mortgage-loans-term-sheet" }, "minDscr": { "id": "agency-fhlmc-supp-min-dcr", "value": 1.25, "unit": "x", "display": "1.25x minimum combined amortizing DCR (terms of 5 years or more)", "as_of": "2025-11", "source": "Freddie Mac Multifamily, Optigo Supplemental Loan Term Sheet", "url": "https://mf.freddiemac.com/docs/product/supplemental.pdf" } } }, { "slug": "bank-commercial-mortgage", "name": "Bank commercial mortgage", "url": "/loans/bank-commercial-mortgage/", "family": "bank", "lender_type": "bank", "eligible_property": [ "small-multifamily", "multifamily", "mixed-use", "retail", "office", "industrial", "self-storage", "medical-office", "manufactured-housing", "hotel", "special-purpose" ], "purposes": [ "purchase", "refinance", "cash-out", "renovation" ], "rate_type": [ "fixed", "floating", "hybrid" ], "index_series": "UST5", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": { "ltv": 59.6, "ltv_multifamily": 63.3, "dscr": 1.43 }, "stand_in": null, "recourse": "full", "prepayment": [ "step-down", "open", "varies" ], "summary": "A balance-sheet loan on investor-owned income property from a community, regional or national bank. The bank keeps the loan on its own books, prices it off its own cost of funds and usually wants the principals to guarantee it and to bank there.", "recourse_note": "Most banks want a personal guarantee from the principal owners. Some will cap it or let it burn off once the property is stabilized and leverage is low.", "prepayment_note": "Commonly a declining step-down schedule, a short lockout, or none at all on floating-rate loans. A swapped fixed rate carries a swap breakage cost instead.", "best_for": [ "Small-balance investors who want one local relationship for the loan and the operating accounts.", "Property that does not fit an agency or CMBS box: mixed use, small retail, a single large tenant, a light renovation.", "Borrowers who expect to sell or refinance early and want a light prepayment penalty." ], "avoid_if": [ "You need a non-recourse loan or will not sign a personal guarantee.", "You want a long fixed rate with no balloon before the loan is paid down.", "Your bank is near its commercial real estate concentration screens and is pulling back." ], "compare_with": [ "credit-union-commercial-loans", "fannie-mae-small-loans", "freddie-mac-small-balance-loans", "dscr-commercial-loans", "life-company-loans", "cmbs-conduit-loans", "portfolio-and-blanket-loans" ], "facts": { "typicalLtv": { "id": "capital_markets-cbre-commercial-ltv-q2-2026", "value": 59.6, "unit": "percent", "display": "59.6%", "as_of": "2026-06-30", "source": "CBRE Lending Momentum Index, Q2 2026 press release (Aug 3, 2026)", "url": "https://www.cbre.com/press-releases/commercial-real-estate-lending-fundamentals-remain-strong-q2-2026-cbre" }, "typicalLtvMf": { "id": "capital_markets-cbre-multifamily-ltv-q2-2026", "value": 63.3, "unit": "percent", "display": "63.3%", "as_of": "2026-06-30", "source": "CBRE Lending Momentum Index, Q2 2026 press release (Aug 3, 2026)", "url": "https://www.cbre.com/press-releases/commercial-real-estate-lending-fundamentals-remain-strong-q2-2026-cbre" }, "typicalDscr": { "id": "capital_markets-cbre-dscr-q2-2026", "value": 1.43, "unit": "x", "display": "1.43x", "as_of": "2026-06-30", "source": "CBRE Lending Momentum Index, Q2 2026 press release (Aug 3, 2026)", "url": "https://www.cbre.com/press-releases/commercial-real-estate-lending-fundamentals-remain-strong-q2-2026-cbre" } } }, { "slug": "c-pace-financing", "name": "C-PACE financing", "url": "/loans/c-pace-financing/", "family": "specialty", "lender_type": "c-pace", "eligible_property": [ "office", "retail", "industrial", "hotel", "multifamily", "mixed-use", "medical-office", "senior-housing", "self-storage", "special-purpose" ], "purposes": [ "construction", "renovation", "refinance" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": 30 }, "amortization_years_max": 30, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "varies" ], "summary": "Commercial Property Assessed Clean Energy financing pays for qualifying energy, water and resiliency improvements and is repaid as a special assessment on the property tax bill. The assessment stays with the property if it is sold, and in most programs it needs the mortgage lender’s written consent.", "recourse_note": "Non-recourse to the owner personally. The assessment is collected like a property tax and is secured by a lien on the property that in most states ranks ahead of the mortgage for unpaid installments.", "prepayment_note": "Set by the program and the capital provider; many charge a prepayment premium or require yield protection in the early years.", "best_for": [ "New construction or gut renovation where qualifying building systems can replace expensive mezzanine or preferred equity in the capital stack.", "Owners who want long fixed-rate money for energy, roof, HVAC, water or resiliency work without a balloon.", "Properties where the senior lender will consent and the assessment can be passed through to tenants under the leases." ], "avoid_if": [ "The senior lender will not consent, or the senior loan documents forbid a senior-ranking assessment.", "The property is in a state or county without an active program.", "You plan to sell soon to a buyer or lender that will not accept the assessment staying on the tax bill." ], "compare_with": [ "mezzanine-loans", "preferred-equity", "construction-loans", "bank-commercial-mortgage" ], "facts": { "termMax": { "id": "nonbank_small-cpace-max-term", "value": 30, "unit": "years", "display": "up to 30 years", "as_of": "2026-11-01", "source": "PACENation, What is PACE Financing?", "url": "https://www.pacenation.org/what-is-pace/" }, "amortMax": { "id": "nonbank_small-cpace-max-term", "value": 30, "unit": "years", "display": "up to 30 years", "as_of": "2026-11-01", "source": "PACENation, What is PACE Financing?", "url": "https://www.pacenation.org/what-is-pace/" } } }, { "slug": "cmbs-conduit-loans", "name": "CMBS conduit loans", "url": "/loans/cmbs-conduit-loans/", "family": "cmbs", "lender_type": "cmbs", "eligible_property": [ "multifamily", "retail", "office", "industrial", "hotel", "self-storage", "manufactured-housing", "mixed-use", "medical-office" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": { "lo": 154, "hi": 220 }, "spread_basis": "range", "indicative_rate": { "lo": 6.48, "hi": 7.14, "mid": 6.81, "index_value": 4.94, "index_date": "2026-10-30" }, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": { "ltv": 55.6, "ltv_multifamily": 62, "dscr": null }, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "lockout", "defeasance", "yield-maintenance" ], "summary": "A fixed-rate, non-recourse first mortgage that an investment bank or other conduit lender originates to sell into a pool of many loans, which a trust then splits into rated bonds. Bond buyers and rating agencies, not a rulebook, set how much the loan can be.", "recourse_note": "The borrower is a single-purpose entity and the sponsor signs a carve-out guaranty for bad acts such as fraud, misapplied cash, an unapproved transfer or a voluntary bankruptcy. Read the carve-out list; it is where personal liability lives.", "prepayment_note": "Usually locked out at first, then defeasance only, then a short open window before maturity. REMIC tax rules bar a defeasance release within 2 years after the REMIC startup day. Some loans use yield maintenance instead.", "best_for": [ "Stabilized income property in a secondary market or a property type that banks and life companies avoid, including hotels and older retail.", "Sponsors who want full proceeds on in-place income without a personal guarantee and plan to hold to maturity.", "Owners who want a long fixed rate with interest-only payments and can live with a servicer instead of a relationship lender." ], "avoid_if": [ "You may sell, refinance or recapitalize before maturity: defeasance can cost far more than a bank step-down.", "Your business plan needs lease sign-offs, partial releases or loan changes after closing; each one goes through a servicer and the pooling agreement.", "The loan is small enough that fixed legal and report costs eat a large share of proceeds." ], "compare_with": [ "sasb-loans", "life-company-loans", "bank-commercial-mortgage", "fannie-mae-multifamily-loans", "bridge-loans", "mezzanine-loans" ], "facts": { "typicalLtv": { "id": "capital_markets-crediq-conduit-blended-ltv-2026", "value": 55.6, "unit": "percent", "display": "55.6%", "as_of": "2026-08-31", "source": "CRED iQ, State of Conduit CMBS (Sep 17, 2026)", "url": "https://cred-iq.com/blog/2026/09/17/state-of-conduit-cmbs-multifamily-and-office-stay-levered-while-other-property-types-provide-more-equity/" }, "typicalLtvMf": { "id": "capital_markets-crediq-conduit-multifamily-ltv-2026", "value": 62, "unit": "percent", "display": "62.0%", "as_of": "2026-08-31", "source": "CRED iQ, State of Conduit CMBS (Sep 17, 2026)", "url": "https://cred-iq.com/blog/2026/09/17/state-of-conduit-cmbs-multifamily-and-office-stay-levered-while-other-property-types-provide-more-equity/" }, "spreadLo": { "id": "capital_markets-crediq-spread-multifamily-mar-2026", "value": 154, "unit": "bps over 10-year UST", "display": "154 bps", "as_of": "2026-03-31", "source": "CRED iQ, CRE Loan Spreads Tighten Across Property Types (Apr 17, 2026)", "url": "https://cred-iq.com/blog/2026/04/17/cre-loan-spreads-tighten-across-property-types-as-the-2026-refinancing-window-widens/" }, "spreadHi": { "id": "capital_markets-crediq-spread-office-mar-2026", "value": 220, "unit": "bps over 10-year UST", "display": "220 bps", "as_of": "2026-03-31", "source": "CRED iQ, CRE Loan Spreads Tighten Across Property Types (Apr 17, 2026)", "url": "https://cred-iq.com/blog/2026/04/17/cre-loan-spreads-tighten-across-property-types-as-the-2026-refinancing-window-widens/" } } }, { "slug": "bridge-loans", "name": "Commercial bridge loans", "url": "/loans/bridge-loans/", "family": "bridge", "lender_type": "debt-fund", "eligible_property": [ "multifamily", "small-multifamily", "mixed-use", "retail", "office", "industrial", "self-storage", "hotel", "manufactured-housing", "senior-housing", "student-housing", "medical-office" ], "purposes": [ "purchase", "refinance", "bridge", "renovation", "cash-out" ], "rate_type": [ "floating" ], "index_series": "SOFR30", "spread_bps": { "lo": 290, "hi": 359 }, "spread_basis": "range", "indicative_rate": { "lo": 6.8, "hi": 7.49, "mid": 7.14, "index_value": 3.89857, "index_date": "2026-10-30" }, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "varies", "prepayment": [ "minimum-interest", "exit-fee", "open" ], "summary": "Short, floating-rate, usually interest-only financing for a property that cannot qualify for a permanent loan yet: a lease-up, a renovation, a purchase with vacancy, or a loan coming due before the property is ready to refinance. The lender sizes on value and the exit, not on today’s income.", "recourse_note": "Institutional bridge lenders usually lend non-recourse with carve-outs and a completion guaranty for funded renovation work. Banks and private lenders more often want a full or partial personal guarantee.", "prepayment_note": "Usually a minimum-interest period, sometimes called spread maintenance, then open. Many loans also carry an exit fee that the lender may waive if it also makes the permanent loan.", "best_for": [ "A purchase or refinance of a property with vacancy, below-market rents or a renovation plan that will raise income.", "A maturing loan on a property whose income will not size a permanent loan today but will in a year or two.", "A closing on a short deadline that a permanent lender cannot meet." ], "avoid_if": [ "The property is already stabilized: a bank, agency or life company loan will almost always cost less.", "The plan has no realistic exit. The permanent loan at the end must be big enough to pay the bridge loan off.", "You cannot carry a rise in the floating index or pay to extend if the plan runs long." ], "compare_with": [ "debt-fund-loans", "hard-money-commercial-loans", "bank-commercial-mortgage", "fannie-mae-multifamily-loans", "cmbs-conduit-loans", "construction-loans" ], "facts": { "spreadLo": { "id": "capital_markets-kref-q3-2026-coupon", "value": 2.9, "unit": "percent over benchmark", "display": "+2.9% over benchmark (6.7% weighted average cash coupon)", "as_of": "2026-09-30", "source": "KKR Real Estate Finance Trust 10-Q, Q3 2026", "url": "https://www.sec.gov/Archives/edgar/data/1631596/000162828026067912/kref-20260930.htm" }, "spreadHi": { "id": "capital_markets-gpmt-q2-2026-coupon", "value": 3.59, "unit": "percent over SOFR", "display": "S+3.59%", "as_of": "2026-06-30", "source": "Granite Point Mortgage Trust 10-Q, Q2 2026", "url": "https://www.sec.gov/Archives/edgar/data/1703644/000170364426000034/gpmt-20260630.htm" } } }, { "slug": "construction-loans", "name": "Commercial construction loan", "url": "/loans/construction-loans/", "family": "construction", "lender_type": "bank", "eligible_property": [ "multifamily", "small-multifamily", "industrial", "self-storage", "retail", "mixed-use", "medical-office", "office", "hotel", "senior-housing", "student-housing" ], "purposes": [ "construction", "renovation" ], "rate_type": [ "floating" ], "index_series": "SOFR30", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "full", "prepayment": [ "open", "exit-fee", "varies" ], "summary": "A short-term, floating-rate loan that funds a ground-up building or a gut renovation in draws as work is completed, sized on cost and on the value at completion, and repaid by a permanent loan or a sale once the property is built and leased.", "recourse_note": "Expect a completion guarantee, a carry or interest guarantee and often a full or partial repayment guarantee that steps down as the project stabilizes.", "prepayment_note": "Usually prepayable without yield maintenance, because the lender expects to be taken out. Some lenders charge an exit fee unless they also provide the permanent loan.", "best_for": [ "Experienced builders with a general contractor the bank accepts and a budget backed by bids.", "Projects with real equity in the deal, enough to stay out of the higher bank capital charge.", "Sponsors who can sign completion and carry guarantees and show the liquidity behind them." ], "avoid_if": [ "Your equity is mostly land value or deferred fees: banks may not count it the way you do.", "This is your first ground-up project and you have no partner with a completed track record.", "You need non-recourse construction debt on a long horizon: compare HUD 221(d)(4)." ], "compare_with": [ "fha-221d4-loans", "debt-fund-loans", "bridge-loans", "mezzanine-loans", "c-pace-financing", "land-loans" ], "facts": {} }, { "slug": "land-loans", "name": "Commercial land loan", "url": "/loans/land-loans/", "family": "construction", "lender_type": "bank", "eligible_property": [ "land" ], "purposes": [ "purchase", "refinance" ], "rate_type": [ "floating", "fixed" ], "index_series": "PRIME", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "full", "prepayment": [ "open", "varies" ], "summary": "A short-term loan secured by land that produces no income: raw acreage, an entitled site waiting for a construction loan, or land being subdivided and improved. The lender relies on the borrower’s cash flow and the exit, not on the property.", "recourse_note": "Full personal guarantees are the norm, because the collateral pays nothing while the loan is outstanding.", "prepayment_note": "Usually prepayable without penalty, since the expected exit is a construction loan or a sale.", "best_for": [ "Buying an entitled site you will build on soon, with a construction lender lined up.", "Borrowers with strong outside income and liquidity who can carry the interest.", "Owner-users buying a pad for their own building, who should also compare SBA 504." ], "avoid_if": [ "You are holding land as a long-term speculation with no plan or timeline.", "You need most of the purchase price financed: land is the lowest-leverage loan a bank makes.", "The site has open zoning, environmental or access questions." ], "compare_with": [ "construction-loans", "hard-money-commercial-loans", "bank-commercial-mortgage", "credit-union-commercial-loans", "owner-occupied-commercial-mortgage" ], "facts": {} }, { "slug": "credit-tenant-lease-financing", "name": "Credit tenant lease financing", "url": "/loans/credit-tenant-lease-financing/", "family": "specialty", "lender_type": "life-company", "eligible_property": [ "retail", "office", "industrial", "medical-office", "special-purpose" ], "purposes": [ "purchase", "refinance", "construction" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "yield-maintenance", "defeasance" ], "summary": "A loan sized and priced on a long lease to a single tenant with a strong credit rating, with the rent paid straight to the lender and the loan amortizing over the lease term. The lender is underwriting the tenant’s credit more than the building.", "recourse_note": "Non-recourse to the landlord; the credit comes from the tenant’s lease obligation, which is assigned to the lender.", "prepayment_note": "Make-whole yield maintenance or defeasance, because the investors are buying a long bond-like cash flow.", "best_for": [ "A building leased long term to one investment-grade tenant on an absolute net lease.", "Build-to-suit projects where the lease is signed before construction and the owner wants maximum proceeds.", "Owners who want to monetize a long lease at the tenant’s credit cost rather than a real estate rate." ], "avoid_if": [ "The tenant is not rated, or the lease leaves roof, structure or casualty risk with the landlord and you will not insure it.", "The lease has early termination rights, co-tenancy or go-dark clauses.", "You want to keep value-add upside: a fully amortizing CTL loan leaves little room to refinance out cash." ], "compare_with": [ "life-company-loans", "cmbs-conduit-loans", "bank-commercial-mortgage", "leasehold-financing" ], "facts": {} }, { "slug": "credit-union-commercial-loans", "name": "Credit union commercial real estate loan", "url": "/loans/credit-union-commercial-loans/", "family": "bank", "lender_type": "credit-union", "eligible_property": [ "small-multifamily", "multifamily", "mixed-use", "retail", "office", "industrial", "self-storage", "medical-office", "owner-occupied" ], "purposes": [ "purchase", "refinance", "cash-out", "renovation" ], "rate_type": [ "fixed", "hybrid", "floating" ], "index_series": "UST5", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "varies", "prepayment": [ "open", "step-down", "varies" ], "summary": "A commercial mortgage from a federally insured credit union to a member. Credit unions lend under NCUA rules that leave loan-to-value and guarantee policy to each board, and most cap how much any one borrower can owe them, so they fit small loans best.", "recourse_note": "A personal guarantee is not required, but a credit union that skips it must document offsetting mitigants. In practice most credit unions still ask for one on investor property.", "prepayment_note": "Often light: many credit union loans prepay with a short step-down or no penalty at all. Read the note, because policies differ widely.", "best_for": [ "Small loans on local apartment, mixed-use and retail buildings where the borrower already banks with the credit union.", "Borrowers who want a light prepayment clause and are willing to move deposits.", "Deals a bank turns down because it is near its commercial real estate concentration screens." ], "avoid_if": [ "The loan is large relative to the credit union’s net worth: its loans to one borrower limit may stop it, or force a participation.", "You need non-recourse debt or a long fixed rate without a balloon.", "You cannot or will not become a member, or the property is outside the credit union’s field of membership." ], "compare_with": [ "bank-commercial-mortgage", "fannie-mae-small-loans", "freddie-mac-small-balance-loans", "dscr-commercial-loans", "owner-occupied-commercial-mortgage" ], "facts": {} }, { "slug": "debt-fund-loans", "name": "Debt fund and mortgage REIT loans", "url": "/loans/debt-fund-loans/", "family": "bridge", "lender_type": "debt-fund", "eligible_property": [ "multifamily", "office", "industrial", "hotel", "retail", "mixed-use", "self-storage", "senior-housing", "student-housing", "manufactured-housing", "medical-office", "land" ], "purposes": [ "purchase", "refinance", "bridge", "renovation", "construction", "cash-out" ], "rate_type": [ "floating" ], "index_series": "SOFR30", "spread_bps": { "lo": 308, "hi": 343 }, "spread_basis": "range", "indicative_rate": { "lo": 6.98, "hi": 7.33, "mid": 7.15, "index_value": 3.89857, "index_date": "2026-10-30" }, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "minimum-interest", "exit-fee" ], "summary": "A floating-rate senior whole loan from a private debt fund or a mortgage REIT, usually with a future-funding piece for renovation, leasing or construction costs. The lender finances its own loans with repurchase lines and CRE CLO bonds, and those funding sources shape the loan’s size, term and tests.", "recourse_note": "Non-recourse with bad-act carve-outs, plus a completion guaranty and often a carry guaranty when the loan funds construction or heavy renovation.", "prepayment_note": "A minimum-interest or spread maintenance period protects the lender’s yield on the funded and unfunded balance, then the loan is open. Exit fees are common.", "best_for": [ "Middle-market and larger sponsors with a defined business plan: renovation, lease-up, repositioning or recapitalization.", "Deals that need future funding for capital work and leasing costs inside the senior loan instead of a separate mezzanine piece.", "Sponsors who will pay for speed, leverage on the plan and certainty of execution." ], "avoid_if": [ "The property is stabilized and permanent debt is available at a lower cost.", "The business plan depends on extension tests you are not confident of meeting.", "You need a small loan: institutional debt funds focus on middle-market and larger balances." ], "compare_with": [ "bridge-loans", "bank-commercial-mortgage", "mezzanine-loans", "preferred-equity", "sasb-loans", "construction-loans" ], "facts": { "spreadLo": { "id": "capital_markets-bxmt-q3-2026-coupon-spread", "value": 3.08, "unit": "percent over benchmark", "display": "+3.08% over floating benchmark rates (mostly SOFR)", "as_of": "2026-09-30", "source": "Blackstone Mortgage Trust 10-Q, Q3 2026", "url": "https://www.sec.gov/Archives/edgar/data/1061630/000106163026000097/bxmt-20260930.htm" }, "spreadHi": { "id": "capital_markets-bxmt-q3-2026-all-in-spread", "value": 3.43, "unit": "percent over benchmark", "display": "+3.43%", "as_of": "2026-09-30", "source": "Blackstone Mortgage Trust 10-Q, Q3 2026", "url": "https://www.sec.gov/Archives/edgar/data/1061630/000106163026000097/bxmt-20260930.htm" } } }, { "slug": "fannie-mae-multifamily-loans", "name": "Fannie Mae DUS multifamily loans", "url": "/loans/fannie-mae-multifamily-loans/", "family": "agency", "lender_type": "agency", "eligible_property": [ "multifamily", "small-multifamily", "affordable-housing", "manufactured-housing", "senior-housing", "student-housing" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "fixed", "floating" ], "index_series": "UST10", "spread_bps": { "lo": 105, "hi": 165 }, "spread_basis": "range", "indicative_rate": { "lo": 5.99, "hi": 6.59, "mid": 6.29, "index_value": 4.94, "index_date": "2026-10-30" }, "limits": { "size_min": null, "size_max": null, "max_ltv": 80, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": 1.25, "min_debt_yield": null, "term_years": { "min": 5, "max": 30 }, "amortization_years_max": 30, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "yield-maintenance", "step-down", "defeasance" ], "summary": "A permanent apartment loan underwritten, closed and serviced by one of Fannie Mae’s Delegated Underwriting and Servicing lenders, then sold to Fannie Mae. Long fixed or floating terms, non-recourse, and leverage set by a published grid.", "recourse_note": "Non-recourse available for most loans above $750,000. The sponsor still signs a carve-out guaranty for fraud, voluntary bankruptcy and similar bad acts.", "prepayment_note": "Yield maintenance on fixed-rate loans; declining prepayment premium on variable-rate loans. A declining premium can be chosen on fixed-rate loans instead, for example 10-year fixed: 5-5-4-4-3-3-2-2-1-1, no lockout.", "best_for": [ "Stabilized apartments where the sponsor wants the most loan the income supports with no personal guarantee.", "Owners who want the widest term menu in the agency market (5 to 30 year terms).", "Affordable, seniors, student and manufactured housing owners who need a lender with a published box for each." ], "avoid_if": [ "The property is not yet stabilized: Stabilized occupancy, typically 90% for 90 days before funding.", "You expect to sell or refinance early and do not want a yield maintenance premium.", "The borrower cannot be a single-asset entity: Single-asset U.S. borrower with U.S. ownership; indirect foreign ownership possible with proper structuring." ], "compare_with": [ "freddie-mac-optigo-loans", "fannie-mae-small-loans", "fha-223f-loans", "life-company-loans", "cmbs-conduit-loans", "bank-commercial-mortgage" ], "facts": { "maxLtv": { "id": "agency-fnma-conventional-max-ltv", "value": 80, "unit": "percent", "display": "80% max LTV", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, Conventional Properties Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/conventional-properties-term-sheet" }, "minDscr": { "id": "agency-fnma-conventional-min-dscr", "value": 1.25, "unit": "x", "display": "1.25x min DSCR", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, Conventional Properties Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/conventional-properties-term-sheet" }, "termMin": { "id": "agency-fnma-dus-term-range", "value": "5 to 30 years", "unit": "years", "display": "5 to 30 year terms", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, DUS Mortgage Loans Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/dus-mortgage-loans-term-sheet" }, "termMax": { "id": "agency-fnma-dus-term-range", "value": "5 to 30 years", "unit": "years", "display": "5 to 30 year terms", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, DUS Mortgage Loans Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/dus-mortgage-loans-term-sheet" }, "amortMax": { "id": "agency-fnma-dus-max-amortization", "value": 30, "unit": "years", "display": "up to 30-year amortization", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, DUS Mortgage Loans Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/dus-mortgage-loans-term-sheet" }, "spread": { "id": "agency-nmq-fnma-10yr-spread", "value": [ 105, 165 ], "unit": "basis points", "display": "105 to 165 bps over the 10-year Treasury (10-year fixed, 55% to 80% LTV)", "as_of": "2026-10-22", "source": "Northmarq, Rates & Spreads (Multifamily Conventional)", "url": "https://www.northmarq.com/insights/rates-spreads" } } }, { "slug": "fannie-mae-small-loans", "name": "Fannie Mae Small Loans", "url": "/loans/fannie-mae-small-loans/", "family": "agency", "lender_type": "agency", "eligible_property": [ "small-multifamily", "multifamily", "affordable-housing", "manufactured-housing" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "fixed", "floating" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": 9000000, "max_ltv": 80, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": 1.25, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": { "slug": "fannie-mae-multifamily-loans", "name": "Fannie Mae DUS multifamily loans", "index_series": "UST10", "spread_bps": { "lo": 105, "hi": 165 }, "amortization_years_max": 30 }, "recourse": "non-recourse", "prepayment": [ "yield-maintenance", "step-down" ], "summary": "Fannie Mae’s streamlined version of its DUS loan for smaller apartment buildings: the same non-recourse, long fixed-rate structure with lighter third-party reports and a size cap.", "recourse_note": "Non-recourse, with standard carve-outs for fraud and bankruptcy.", "prepayment_note": "The same menu as larger Fannie Mae loans: Yield maintenance on fixed-rate loans; declining prepayment premium on variable-rate loans. Many small-loan borrowers pick a declining schedule to keep a sale open.", "best_for": [ "Stabilized apartment buildings with loans up to $9 million nationwide, especially loans below Freddie Mac’s Conventional Small floor (generally a $2 million floor).", "Owners who want a non-recourse loan on a small building instead of a bank loan with a personal guarantee.", "Small manufactured housing communities and affordable properties that meet Fannie Mae’s quality tests." ], "avoid_if": [ "The building needs heavy repairs or has meaningful vacancy today.", "You need the loan to close faster than a bank that already holds your deposits.", "Commercial space or a non-residential use is a large part of the income." ], "compare_with": [ "freddie-mac-small-balance-loans", "bank-commercial-mortgage", "credit-union-commercial-loans", "dscr-commercial-loans", "fannie-mae-multifamily-loans", "fha-223f-loans" ], "facts": { "sizeMax": { "id": "agency-fnma-small-max-loan", "value": 9000000, "unit": "USD", "display": "up to $9 million nationwide", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, Small Mortgage Loan Program Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/small-loans/small-mortgage-loan-program-term-sheet" }, "maxLtv": { "id": "agency-fnma-small-max-ltv", "value": 80, "unit": "percent", "display": "80% max LTV", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, Small Mortgage Loan Program Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/small-loans/small-mortgage-loan-program-term-sheet" }, "minDscr": { "id": "agency-fnma-small-min-dscr", "value": 1.25, "unit": "x", "display": "1.25x min DSCR", "as_of": "2026-11-01", "source": "Fannie Mae Multifamily, Small Mortgage Loan Program Term Sheet", "url": "https://multifamily.fanniemae.com/financing-options/small-loans/small-mortgage-loan-program-term-sheet" } } }, { "slug": "fha-221d4-loans", "name": "FHA 221(d)(4) construction loans", "url": "/loans/fha-221d4-loans/", "family": "fha", "lender_type": "fha", "eligible_property": [ "multifamily", "affordable-housing" ], "purposes": [ "construction", "renovation" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": 87, "min_dscr": 1.15, "min_debt_yield": null, "term_years": { "min": null, "max": 40 }, "amortization_years_max": 40, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "lockout", "varies" ], "summary": "A HUD-insured loan that funds the construction or substantial rehabilitation of an apartment property and then converts, with no refinance, into a fixed-rate, fully amortizing permanent loan. The highest loan-to-cost and longest term available on new multifamily.", "recourse_note": "Non-recourse, with carve-outs for bad acts. Construction completion is backed by bonds or a letter of credit, not a personal guarantee of the loan.", "prepayment_note": "A lockout and a declining premium are negotiated at rate lock and run from the start of the loan, construction years included.", "best_for": [ "Developers who want one non-recourse loan from groundbreaking through permanent, with no takeout refinance risk.", "Affordable and middle-income projects that qualify for higher loan-to-cost and lower coverage.", "Substantial rehabilitation where the scope is too large for a bridge loan and the owner plans a long hold." ], "avoid_if": [ "The schedule cannot absorb a long HUD review before the start of construction.", "The budget cannot carry prevailing wage labor.", "You plan to sell soon after stabilization, inside the prepayment lockout." ], "compare_with": [ "construction-loans", "fha-223f-loans", "bank-commercial-mortgage", "bridge-loans", "debt-fund-loans" ], "facts": { "maxLtc": { "id": "fha-221d4-ltc-market", "value": 87, "unit": "percent", "display": "87% of cost", "as_of": "2025-01-08", "source": "HUD Mortgagee Letter 2025-03, Multifamily Changes in DSCR and LTV/LTC", "url": "https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-03hsgml.pdf" }, "minDscr": { "id": "fha-221d4-dscr-market", "value": 1.15, "unit": "x", "display": "1.15x DSCR", "as_of": "2025-01-08", "source": "HUD Mortgagee Letter 2025-03, Multifamily Changes in DSCR and LTV/LTC", "url": "https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-03hsgml.pdf" }, "termMax": { "id": "fha-term-nc-max", "value": 40, "unit": "years", "display": "Up to 40 years (or 75% of remaining economic life, if less)", "as_of": "2021-03-19", "source": "HUD MAP Guide 4430.G (2020 MAP Guide, revision March 2021)", "url": "https://www.hud.gov/sites/dfiles/OCHCO/documents/4430GHSGG.pdf" }, "amortMax": { "id": "fha-term-nc-max", "value": 40, "unit": "years", "display": "Up to 40 years (or 75% of remaining economic life, if less)", "as_of": "2021-03-19", "source": "HUD MAP Guide 4430.G (2020 MAP Guide, revision March 2021)", "url": "https://www.hud.gov/sites/dfiles/OCHCO/documents/4430GHSGG.pdf" } } }, { "slug": "fha-223a7-loans", "name": "FHA 223(a)(7) streamlined refinance", "url": "/loans/fha-223a7-loans/", "family": "fha", "lender_type": "fha", "eligible_property": [ "multifamily", "small-multifamily", "affordable-housing" ], "purposes": [ "refinance" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "varies" ], "summary": "HUD’s streamlined refinance for a property that already carries an FHA-insured mortgage. It lowers the rate or extends the term with lighter underwriting than a new HUD loan, but it cannot take cash out beyond the existing debt and closing costs.", "recourse_note": "Non-recourse, with carve-outs for bad acts.", "prepayment_note": "The existing loan’s prepayment terms decide when a 223(a)(7) makes sense; the new loan carries its own negotiated lockout and premium.", "best_for": [ "Owners of FHA-insured apartments whose note rate is well above today’s market.", "Borrowers who want to re-amortize or extend the term to lower the payment.", "Older HUD loans still paying the insurance premium set before the 2025 reduction." ], "avoid_if": [ "The property does not have an FHA-insured loan today: Only loans already FHA-insured.", "You need cash out or funds for a large renovation. Work requiring Davis-Bacon makes a deal ineligible for 223(a)(7).", "The current loan is still in its prepayment lockout or carries a premium that outweighs the rate savings." ], "compare_with": [ "fha-223f-loans", "fannie-mae-multifamily-loans", "freddie-mac-optigo-loans", "agency-supplemental-loans" ], "facts": {} }, { "slug": "fha-223f-loans", "name": "FHA 223(f) multifamily loans", "url": "/loans/fha-223f-loans/", "family": "fha", "lender_type": "fha", "eligible_property": [ "multifamily", "small-multifamily", "affordable-housing", "mixed-use" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": 87, "max_ltv_cash_out": 80, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": 1.15, "min_debt_yield": null, "term_years": { "min": null, "max": 35 }, "amortization_years_max": 35, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "lockout", "varies" ], "summary": "A HUD-insured permanent loan to buy or refinance an existing apartment property, made by an approved MAP lender. The highest leverage and longest fully amortizing term in apartment lending, in exchange for a slow HUD review and an annual mortgage insurance premium.", "recourse_note": "Non-recourse, with carve-outs for bad acts.", "prepayment_note": "Prepayment generally prohibited for 5 years from endorsement. After that, a declining premium is negotiated with the lender at rate lock.", "best_for": [ "Long-term holders who want the most loan on a stabilized building and a fixed rate with no balloon.", "Affordable and rent-assisted properties, which size at 90% LTV and 1.11x DSCR.", "Refinancing a maturing bank or bridge loan when the owner can wait for HUD and does not plan to sell." ], "avoid_if": [ "You need to close fast, or a purchase contract will not wait for a HUD firm commitment.", "The property was finished recently: Certificates of occupancy issued 3 or more years before application (newer properties need 1 month at the program DSCR).", "You may sell or recapitalize inside the prepayment lockout." ], "compare_with": [ "fannie-mae-multifamily-loans", "freddie-mac-optigo-loans", "fha-221d4-loans", "fha-223a7-loans", "bridge-loans", "life-company-loans" ], "facts": { "maxLtv": { "id": "fha-223f-ltv-market", "value": 87, "unit": "percent", "display": "87% LTV", "as_of": "2025-01-08", "source": "HUD Mortgagee Letter 2025-03, Multifamily Changes in DSCR and LTV/LTC", "url": "https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-03hsgml.pdf" }, "maxLtvCashOut": { "id": "fha-223f-cashout-ltv", "value": 80, "unit": "percent", "display": "Greater of 80% LTV or the cost to refinance", "as_of": "2021-03-19", "source": "HUD MAP Guide 4430.G (2020 MAP Guide, revision March 2021)", "url": "https://www.hud.gov/sites/dfiles/OCHCO/documents/4430GHSGG.pdf" }, "minDscr": { "id": "fha-223f-dscr-market", "value": 1.15, "unit": "x", "display": "1.15x DSCR", "as_of": "2025-01-08", "source": "HUD Mortgagee Letter 2025-03, Multifamily Changes in DSCR and LTV/LTC", "url": "https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-03hsgml.pdf" }, "termMax": { "id": "fha-term-223f-max", "value": 35, "unit": "years", "display": "Up to 35 years (or 75% of remaining economic life), minimum 10", "as_of": "2021-03-19", "source": "HUD MAP Guide 4430.G (2020 MAP Guide, revision March 2021)", "url": "https://www.hud.gov/sites/dfiles/OCHCO/documents/4430GHSGG.pdf" }, "amortMax": { "id": "fha-term-223f-max", "value": 35, "unit": "years", "display": "Up to 35 years (or 75% of remaining economic life), minimum 10", "as_of": "2021-03-19", "source": "HUD MAP Guide 4430.G (2020 MAP Guide, revision March 2021)", "url": "https://www.hud.gov/sites/dfiles/OCHCO/documents/4430GHSGG.pdf" } } }, { "slug": "freddie-mac-optigo-loans", "name": "Freddie Mac Optigo conventional loans", "url": "/loans/freddie-mac-optigo-loans/", "family": "agency", "lender_type": "agency", "eligible_property": [ "multifamily", "affordable-housing", "manufactured-housing", "senior-housing", "student-housing" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "fixed", "floating" ], "index_series": "UST10", "spread_bps": { "lo": 95, "hi": 135 }, "spread_basis": "range", "indicative_rate": { "lo": 5.89, "hi": 6.29, "mid": 6.09, "index_value": 4.94, "index_date": "2026-10-30" }, "limits": { "size_min": 10000000, "size_max": null, "max_ltv": 80, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": 1.25, "min_debt_yield": null, "term_years": { "min": 5, "max": 10 }, "amortization_years_max": 30, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "yield-maintenance", "lockout", "defeasance" ], "summary": "Freddie Mac’s core multifamily loan, originated by its Optigo lender network and usually securitized in K-Deals. Fixed or floating, non-recourse, sized on one published grid of loan-to-value and amortizing debt coverage.", "recourse_note": "Non-recourse except for standard carve-outs; the borrower is typically a single purpose entity.", "prepayment_note": "Fixed: Yield maintenance until securitized, then 2-year lockout and defeasance; open final 90 days. Floating: Option 1: locked out year 1, then 1%; open final 90 days.", "best_for": [ "Stabilized apartments that clear the $10 million minimum, where the sponsor wants a non-recourse fixed rate.", "Seniors, student and manufactured housing owners who want an agency execution with a property-specific term sheet.", "Borrowers who may want a supplemental loan later, including behind a securitized first loan." ], "avoid_if": [ "The loan is below the conventional minimum; look at Conventional Small or Fannie Mae Small Loans.", "You need to prepay inside the securitization lockout, or cannot carry a defeasance cost on an early sale.", "The property still needs lease-up or a renovation to reach stable occupancy." ], "compare_with": [ "fannie-mae-multifamily-loans", "freddie-mac-small-balance-loans", "agency-supplemental-loans", "cmbs-conduit-loans", "life-company-loans", "fha-223f-loans" ], "facts": { "sizeMin": { "id": "agency-fhlmc-fixed-min-loan", "value": 10000000, "unit": "USD", "display": "$10 million minimum", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Fixed-Rate Loans Term Sheet", "url": "https://mf.freddiemac.com/docs/product/fixed_rate.pdf" }, "maxLtv": { "id": "agency-fhlmc-fixed-max-ltv", "value": 80, "unit": "percent", "display": "80% max LTV (7-year+), 75% (5 to under 7 years)", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Fixed-Rate Loans Term Sheet", "url": "https://mf.freddiemac.com/docs/product/fixed_rate.pdf" }, "minDscr": { "id": "agency-fhlmc-fixed-min-dcr", "value": 1.25, "unit": "x", "display": "1.25x min DCR", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Fixed-Rate Loans Term Sheet", "url": "https://mf.freddiemac.com/docs/product/fixed_rate.pdf" }, "termMin": { "id": "agency-fhlmc-fixed-terms", "value": "5 to 10 years (up to 30 if not securitized)", "unit": "years", "display": "5 to 10-year terms; up to 30 if not purchased for securitization", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Fixed-Rate Loans Term Sheet", "url": "https://mf.freddiemac.com/docs/product/fixed_rate.pdf" }, "termMax": { "id": "agency-fhlmc-fixed-terms", "value": "5 to 10 years (up to 30 if not securitized)", "unit": "years", "display": "5 to 10-year terms; up to 30 if not purchased for securitization", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Fixed-Rate Loans Term Sheet", "url": "https://mf.freddiemac.com/docs/product/fixed_rate.pdf" }, "amortMax": { "id": "agency-fhlmc-fixed-max-amortization", "value": 30, "unit": "years", "display": "30-year maximum amortization", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Fixed-Rate Loans Term Sheet", "url": "https://mf.freddiemac.com/docs/product/fixed_rate.pdf" }, "spread": { "id": "agency-nmq-fhlmc-10yr-spread", "value": [ 95, 135 ], "unit": "basis points", "display": "95 to 135 bps over the 10-year Treasury (10-year fixed, 55% to 80% LTV)", "as_of": "2026-10-22", "source": "Northmarq, Rates & Spreads (Multifamily Conventional)", "url": "https://www.northmarq.com/insights/rates-spreads" } } }, { "slug": "freddie-mac-small-balance-loans", "name": "Freddie Mac small balance loans (Conventional Small)", "url": "/loans/freddie-mac-small-balance-loans/", "family": "agency", "lender_type": "agency", "eligible_property": [ "small-multifamily", "multifamily", "affordable-housing" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": 2000000, "size_max": 10000000, "max_ltv": 80, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": 1.25, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": 30, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": { "slug": "freddie-mac-optigo-loans", "name": "Freddie Mac Optigo conventional loans", "index_series": "UST10", "spread_bps": { "lo": 95, "hi": 135 }, "amortization_years_max": 30 }, "recourse": "non-recourse", "prepayment": [ "yield-maintenance", "lockout", "defeasance", "step-down" ], "summary": "Freddie Mac’s small apartment loan after the 2026 overhaul. The legacy Small Balance Loan program stopped taking applications and Optigo Conventional Small took its place, with a higher floor, fixed rates only and the conventional prepayment structure.", "recourse_note": "Non-recourse except standard carve-outs.", "prepayment_note": "Yield maintenance until securitization, 2-year lockout, then defeasance; open final 90 days. Step-down and yield maintenance without defeasance are available on Conventional Small for an added cost.", "best_for": [ "Stabilized buildings that fit the product, predominantly market-rate properties of 5 to 50 units, with a loan of generally $2 million to $10 million.", "Owners who want a non-recourse fixed rate and can hold through the prepayment structure.", "Borrowers who want a longer fixed term than most small-loan lenders offer: 5, 7, 10, 12 or 15-year fixed terms." ], "avoid_if": [ "The loan is below the floor; Fannie Mae Small Loans, banks and credit unions lend smaller.", "The property is student, seniors, manufactured housing or a co-op, or carries hard subordinate debt.", "You want an adjustable rate or a cheap early exit; the legacy hybrid ARMs and default step-downs are gone." ], "compare_with": [ "fannie-mae-small-loans", "bank-commercial-mortgage", "credit-union-commercial-loans", "dscr-commercial-loans", "freddie-mac-optigo-loans", "portfolio-and-blanket-loans" ], "facts": { "sizeMin": { "id": "agency-fhlmc-small-min-loan", "value": 2000000, "unit": "USD", "display": "generally a $2 million floor", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Conventional Small Term Sheet", "url": "https://mf.freddiemac.com/docs/conventional_small.pdf" }, "sizeMax": { "id": "agency-fhlmc-small-max-loan", "value": 10000000, "unit": "USD", "display": "generally a $10 million ceiling (loans of $10 million or less)", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Conventional Small Term Sheet", "url": "https://mf.freddiemac.com/docs/conventional_small.pdf" }, "maxLtv": { "id": "agency-fhlmc-small-max-ltv", "value": 80, "unit": "percent", "display": "80% (7-year+ terms); 75% (5 to under 7 years)", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Conventional Small Term Sheet", "url": "https://mf.freddiemac.com/docs/conventional_small.pdf" }, "minDscr": { "id": "agency-fhlmc-small-min-dcr", "value": 1.25, "unit": "x", "display": "1.25x minimum amortizing DCR", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Conventional Small Term Sheet", "url": "https://mf.freddiemac.com/docs/conventional_small.pdf" }, "amortMax": { "id": "agency-fhlmc-small-max-amortization", "value": 30, "unit": "years", "display": "30-year amortization", "as_of": "2026-04", "source": "Freddie Mac Multifamily, Optigo Conventional Small Term Sheet", "url": "https://mf.freddiemac.com/docs/conventional_small.pdf" } } }, { "slug": "hard-money-commercial-loans", "name": "Hard money and private commercial loans", "url": "/loans/hard-money-commercial-loans/", "family": "bridge", "lender_type": "private", "eligible_property": [ "small-multifamily", "multifamily", "mixed-use", "retail", "office", "industrial", "self-storage", "hotel", "land", "special-purpose", "medical-office" ], "purposes": [ "purchase", "refinance", "cash-out", "bridge", "renovation", "construction" ], "rate_type": [ "fixed", "floating" ], "index_series": "PRIME", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "full", "prepayment": [ "minimum-interest", "exit-fee", "open" ], "summary": "Short-term loans from private lenders and investor-backed funds that lend mainly on the collateral and the equity in it. They close fast and accept problems other lenders will not, at a much higher rate and with the lender holding extra collateral or guarantees.", "recourse_note": "Expect a personal guarantee, and often extra collateral or a pledge of ownership interests on top of the first mortgage.", "prepayment_note": "Commonly a minimum number of months of interest, then open. Some lenders charge an exit fee.", "best_for": [ "A purchase that must close in days, or a deal where the buyer needs certainty more than price.", "A property or borrower other lenders will not take: a title issue, a vacant building, a credit event, a foreclosure auction.", "Short holds where the higher rate costs less than losing the deal." ], "avoid_if": [ "Any institutional bridge lender will do the deal: the rate gap is large.", "You do not have a clear and near-term exit to a sale or a permanent loan.", "You cannot afford the default rate if the exit slips." ], "compare_with": [ "bridge-loans", "dscr-commercial-loans", "bank-commercial-mortgage", "debt-fund-loans" ], "facts": {} }, { "slug": "hud-232-loans", "name": "HUD 232 healthcare loans", "url": "/loans/hud-232-loans/", "family": "fha", "lender_type": "fha", "eligible_property": [ "senior-housing" ], "purposes": [ "purchase", "refinance", "construction", "renovation" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": 80, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": 1.45, "min_debt_yield": null, "term_years": { "min": null, "max": 40 }, "amortization_years_max": 40, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "lockout", "varies" ], "summary": "FHA-insured, non-recourse, fully amortizing loans for licensed residential care: skilled nursing, assisted living, memory care and board and care. Sub-programs cover new construction, purchase or refinance, and streamlined refinance of an existing HUD healthcare loan.", "recourse_note": "Non-recourse, with carve-outs for bad acts. HUD reviews the operator as closely as the owner, and the operator signs its own agreements.", "prepayment_note": "A lockout and declining premium are negotiated at rate lock.", "best_for": [ "Stabilized skilled nursing and assisted living owners who want a fixed rate with no balloon and no personal recourse.", "Refinancing bank or bridge debt on a facility with a seasoned operating history.", "Owners of existing HUD healthcare loans who want a lower rate through the streamlined refinance." ], "avoid_if": [ "You need cash out on a purchase or refinance: No equity take-out on 232/223(f).", "The facility opened recently: Completed or substantially rehabilitated at least 3 years before application.", "The operator is new, thinly capitalized or has open survey problems with state regulators." ], "compare_with": [ "fannie-mae-multifamily-loans", "freddie-mac-optigo-loans", "bridge-loans", "bank-commercial-mortgage", "fha-223f-loans" ], "facts": { "maxLtv": { "id": "fha-232-ltv-snf-forprofit", "value": 80, "unit": "percent", "display": "80% (85% non-profit)", "as_of": "2017-01-12", "source": "HUD Handbook 4232.1, Section II Production, Chapter 3 Loan Sizing", "url": "https://www.hud.gov/sites/documents/42321s2c3hsgh.pdf" }, "minDscr": { "id": "fha-232-dscr-min", "value": 1.45, "unit": "x", "display": "1.45x (includes MIP); 1.11x for 223(a)(7) and 232(i)", "as_of": "2017-01-12", "source": "HUD Handbook 4232.1, Section II Production, Chapter 3 Loan Sizing", "url": "https://www.hud.gov/sites/documents/42321s2c3hsgh.pdf" }, "termMax": { "id": "fha-232-term-nc", "value": 40, "unit": "years", "display": "Up to 40 years (or 75% of remaining economic life)", "as_of": "2017-01-12", "source": "HUD Handbook 4232.1, Section II Production, Chapter 2 Program Overview", "url": "https://www.hud.gov/sites/documents/42321s2c2hsgh.pdf" }, "amortMax": { "id": "fha-232-term-nc", "value": 40, "unit": "years", "display": "Up to 40 years (or 75% of remaining economic life)", "as_of": "2017-01-12", "source": "HUD Handbook 4232.1, Section II Production, Chapter 2 Program Overview", "url": "https://www.hud.gov/sites/documents/42321s2c2hsgh.pdf" } } }, { "slug": "leasehold-financing", "name": "Leasehold (ground lease) financing", "url": "/loans/leasehold-financing/", "family": "specialty", "lender_type": "multiple", "eligible_property": [ "multifamily", "office", "retail", "hotel", "industrial", "mixed-use", "medical-office", "senior-housing", "student-housing" ], "purposes": [ "purchase", "refinance", "construction", "cash-out" ], "rate_type": [ "fixed", "floating" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "varies", "prepayment": [ "varies" ], "summary": "A mortgage on a building whose owner leases the land under it instead of owning it. The lender’s collateral is the tenant’s leasehold estate, so the loan depends on how long the ground lease runs, whether the rent can reset, and what rights the lender has if the tenant defaults.", "recourse_note": "Follows the lender program: non-recourse at agency, CMBS and most life companies, recourse at most banks.", "prepayment_note": "Follows the lender program the loan comes from.", "best_for": [ "Buildings on land owned by a university, hospital, port authority, church or family trust that will not sell the land.", "Developers who use a ground lease to cut the equity needed for land and want the building financed separately.", "Owners of leasehold properties with a long remaining term and lender protections already written into the lease." ], "avoid_if": [ "The ground lease is short, has no lender protections, or resets rent to market in a way that can erase cash flow.", "The landowner will not sign an estoppel or amend the lease for the lender.", "The lease is unsubordinated and the loan will not fully amortize: lenders then need a much longer remaining term." ], "compare_with": [ "life-company-loans", "cmbs-conduit-loans", "fannie-mae-multifamily-loans", "freddie-mac-optigo-loans", "bank-commercial-mortgage", "credit-tenant-lease-financing" ], "facts": {} }, { "slug": "life-company-loans", "name": "Life insurance company loan", "url": "/loans/life-company-loans/", "family": "life-company", "lender_type": "life-company", "eligible_property": [ "multifamily", "industrial", "retail", "office", "medical-office", "self-storage", "manufactured-housing", "student-housing", "senior-housing", "mixed-use" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": { "lo": 115, "hi": 220 }, "spread_basis": "range", "indicative_rate": { "lo": 6.09, "hi": 7.14, "mid": 6.62, "index_value": 4.94, "index_date": "2026-10-30" }, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": 3, "max": 20 }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": { "ltv": 58, "ltv_multifamily": null, "dscr": 1.71 }, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "lockout", "yield-maintenance" ], "summary": "A long-term, fixed-rate first mortgage funded from a life insurer’s general account and held to maturity. Life companies lend at modest leverage on stabilized, well-located property and trade a low rate for strict prepayment, transfer and added-debt terms.", "recourse_note": "Typically non-recourse to the borrower, with standard carve-outs (fraud, misapplied funds, environmental, unauthorized transfer) backed by a guarantor.", "prepayment_note": "Expect a lockout in the early years and yield maintenance after it, with a short open window before maturity. The loan documents also bar transfer of the property and added debt without the lender’s consent.", "best_for": [ "Stabilized, well-leased property in a strong location where you want a long fixed rate at modest leverage.", "Long-term holders who will not sell or add debt for the life of the loan.", "Borrowers who want to lock a rate now for a closing months away." ], "avoid_if": [ "You need high leverage or the property is still leasing up.", "You may sell, refinance or add a second loan before maturity: the prepayment and transfer terms make that expensive.", "The property is small, in a tertiary market, or a type the insurer does not target." ], "compare_with": [ "cmbs-conduit-loans", "fannie-mae-multifamily-loans", "freddie-mac-optigo-loans", "bank-commercial-mortgage", "credit-tenant-lease-financing", "sasb-loans" ], "facts": { "termMin": { "id": "capital_markets-life-co-term-range", "value": "3 to 20", "unit": "years", "display": "3 to 20 years", "as_of": "2026-01-01", "source": "Nassau CorAmerica, Commercial Mortgage Loans: An Attractive Investment Strategy (2026 white paper), restating ACLI Commercial Mortgage Commitments", "url": "https://assets.nfg.com/documents/CML-White-Paper-2026.pdf" }, "termMax": { "id": "capital_markets-life-co-term-range", "value": "3 to 20", "unit": "years", "display": "3 to 20 years", "as_of": "2026-01-01", "source": "Nassau CorAmerica, Commercial Mortgage Loans: An Attractive Investment Strategy (2026 white paper), restating ACLI Commercial Mortgage Commitments", "url": "https://assets.nfg.com/documents/CML-White-Paper-2026.pdf" }, "typicalLtv": { "id": "capital_markets-acli-new-loan-ltv-2025", "value": 58, "unit": "percent", "display": "58.0% average LTV on new life company loans in 2025", "as_of": "2025-12-31", "source": "Nassau CorAmerica, Commercial Mortgage Loans: An Attractive Investment Strategy (2026 white paper), restating ACLI Commercial Mortgage Commitments", "url": "https://assets.nfg.com/documents/CML-White-Paper-2026.pdf" }, "typicalDscr": { "id": "capital_markets-acli-new-loan-dscr-2025", "value": 1.71, "unit": "x", "display": "1.71x average DSCR on new life company loans in 2025", "as_of": "2025-12-31", "source": "Nassau CorAmerica, Commercial Mortgage Loans: An Attractive Investment Strategy (2026 white paper), restating ACLI Commercial Mortgage Commitments", "url": "https://assets.nfg.com/documents/CML-White-Paper-2026.pdf" }, "spread": { "id": "capital_markets-nmq-lifeco-10yr-spread", "value": [ 115, 220 ], "unit": "basis points", "display": "115 to 220 bps over the 10-year Treasury (10-year fixed, 50% to 75% LTV, multifamily and commercial)", "as_of": "2026-10-22", "source": "Northmarq, Rates & Spreads (Life Co, Multifamily and Commercial)", "url": "https://www.northmarq.com/insights/rates-spreads" } } }, { "slug": "mezzanine-loans", "name": "Mezzanine loans", "url": "/loans/mezzanine-loans/", "family": "subordinate", "lender_type": "debt-fund", "eligible_property": [ "multifamily", "office", "industrial", "hotel", "retail", "mixed-use", "self-storage", "senior-housing", "student-housing" ], "purposes": [ "purchase", "refinance", "cash-out", "bridge", "construction" ], "rate_type": [ "fixed", "floating" ], "index_series": "SOFR30", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "minimum-interest", "yield-maintenance", "lockout" ], "summary": "A loan to the owner of the property-owning company, secured by a pledge of that ownership interest instead of a mortgage. It sits behind the first mortgage and ahead of the equity, and fills part of the gap between the senior loan and the sponsor’s cash.", "recourse_note": "Non-recourse to the sponsor apart from carve-outs; the lender’s remedy is to take the ownership interest through a UCC foreclosure, which is usually much faster than a mortgage foreclosure.", "prepayment_note": "A minimum-interest period or yield maintenance protects the lender’s return; the terms often mirror the senior loan’s prepayment.", "best_for": [ "A purchase or recapitalization where the senior lender’s proceeds leave a gap the sponsor does not want to fill with more equity.", "Sponsors who want to keep control and upside instead of bringing in a preferred equity partner.", "Senior loans from CMBS or debt funds whose documents allow pledged-equity debt." ], "avoid_if": [ "The senior loan bans subordinate debt or pledges of ownership interests, as many agency small loans do.", "The property is multifamily with an agency first mortgage: a supplemental loan from the same program is usually cheaper.", "A thin cushion would leave the property one bad quarter from a UCC foreclosure." ], "compare_with": [ "preferred-equity", "agency-supplemental-loans", "debt-fund-loans", "cmbs-conduit-loans", "bridge-loans" ], "facts": {} }, { "slug": "dscr-commercial-loans", "name": "Non-bank DSCR commercial loans (5+ units, mixed-use)", "url": "/loans/dscr-commercial-loans/", "family": "non-bank", "lender_type": "non-bank", "eligible_property": [ "small-multifamily", "mixed-use", "retail", "office", "industrial", "self-storage" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "fixed", "hybrid" ], "index_series": "UST5", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "varies", "prepayment": [ "step-down", "varies" ], "summary": "A term loan from a non-bank investor lender that qualifies the deal mostly on the property’s rent covering the payment, with light review of the borrower’s personal income and tax returns. Aimed at small apartment buildings, mixed use and small commercial property owned by investors.", "recourse_note": "Usually full recourse or a guaranty from the principal; some lenders offer limited recourse at lower leverage.", "prepayment_note": "A declining step-down is the common structure; some lenders offer a shorter schedule for a higher rate.", "best_for": [ "Investors with a small apartment or mixed-use building whose tax returns understate cash flow or who own through several entities.", "Properties below the size most agency lenders target, or that a bank will not take because of concentration limits.", "Borrowers who want a longer fixed or amortizing loan instead of a short bank balloon." ], "avoid_if": [ "You qualify for a bank, credit union or agency small loan: those usually price well below a non-bank DSCR loan.", "You may sell within a few years and the step-down penalty would cost more than the rate saved.", "The property is large enough for agency or CMBS execution." ], "compare_with": [ "bank-commercial-mortgage", "credit-union-commercial-loans", "fannie-mae-small-loans", "freddie-mac-small-balance-loans", "hard-money-commercial-loans", "portfolio-and-blanket-loans" ], "facts": {} }, { "slug": "owner-occupied-commercial-mortgage", "name": "Owner-occupied commercial mortgage (SBA 504, 7(a), bank)", "url": "/loans/owner-occupied-commercial-mortgage/", "family": "sba", "lender_type": "sba", "eligible_property": [ "owner-occupied", "medical-office", "special-purpose", "industrial", "office", "retail" ], "purposes": [ "purchase", "refinance", "construction", "renovation" ], "rate_type": [ "fixed", "floating", "hybrid" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": 1.15, "min_debt_yield": null, "term_years": { "min": null, "max": 25 }, "amortization_years_max": 25, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "full", "prepayment": [ "step-down", "varies" ], "summary": "Financing for a business that buys, builds or refinances the building it operates from. The three routes are an SBA 504 loan (a bank first lien plus a CDC second lien), an SBA 7(a) loan, and a conventional owner-user loan from a bank.", "recourse_note": "SBA loans require personal guarantees from the principal owners, and banks ask the same on conventional owner-user loans.", "prepayment_note": "The 504 debenture carries a declining premium over the first half of its term. A 7(a) loan has a recoupment fee only in the early years: On 7(a) loans of 15 years or longer: 5% in year 1, 3% in year 2, 1% in year 3, only when prepaying more than 25% in a year.", "best_for": [ "An operating business buying its own building with little cash down: the standard 504 split is 50% bank first lien, 40% CDC debenture, 10% borrower.", "Owners who want a long fixed rate with no balloon on the SBA piece.", "Special-purpose buildings, such as a medical clinic or a car wash, that investor lenders avoid." ], "avoid_if": [ "The business will occupy less than the SBA minimum share of the building: 51% of rentable space.", "The property is an investment the business does not operate from.", "Any owner is not a U.S. citizen or national living in the U.S.: All owners must be U.S. citizens or U.S. nationals living in the U.S.; green card holders are no longer eligible." ], "compare_with": [ "bank-commercial-mortgage", "credit-union-commercial-loans", "construction-loans", "land-loans" ], "facts": { "minDscr": { "id": "owner_occupied-sba504-dscr-min", "value": 1.15, "unit": "x", "display": "1.15x", "as_of": "2026-10-01", "source": "SBA SOP 50 10 8.1, Lender and Development Company Loan Programs (effective Oct 1, 2026)", "url": "https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx" }, "termMax": { "id": "owner_occupied-sba7a-re-max-term", "value": 25, "unit": "years", "display": "25 years (plus construction period)", "as_of": "2026-10-01", "source": "SBA SOP 50 10 8.1, Lender and Development Company Loan Programs (effective Oct 1, 2026)", "url": "https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx" }, "amortMax": { "id": "owner_occupied-sba7a-re-max-term", "value": 25, "unit": "years", "display": "25 years (plus construction period)", "as_of": "2026-10-01", "source": "SBA SOP 50 10 8.1, Lender and Development Company Loan Programs (effective Oct 1, 2026)", "url": "https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx" } } }, { "slug": "portfolio-and-blanket-loans", "name": "Portfolio and blanket loan", "url": "/loans/portfolio-and-blanket-loans/", "family": "bank", "lender_type": "bank", "eligible_property": [ "small-multifamily", "multifamily", "mixed-use", "retail", "industrial", "self-storage", "office", "manufactured-housing" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "fixed", "hybrid", "floating" ], "index_series": "UST5", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "full", "prepayment": [ "step-down", "yield-maintenance", "varies" ], "summary": "One loan secured by several properties under a single note, with every property cross-collateralized and cross-defaulted. Investors use it to refinance a group of small buildings at once, pull equity from the strong ones, or buy a portfolio in one closing.", "recourse_note": "Bank blanket loans are usually recourse. Non-bank portfolio lenders may limit recourse to carve-outs on larger, stabilized pools.", "prepayment_note": "Two layers: the penalty on the whole loan, and the release price for selling or refinancing one property out of the pool. The release price usually matters more.", "best_for": [ "Investors with several small buildings at one lender who want one payment, one maturity and one annual review.", "Pulling equity out of paid-down buildings to fund the next purchase without selling.", "Buying a portfolio from one seller in a single closing." ], "avoid_if": [ "You plan to sell properties one at a time soon: release prices and paydowns can trap equity.", "One weak building would drag the pool’s coverage below the lender’s test.", "Each property qualifies on its own for agency or other non-recourse debt at a better rate." ], "compare_with": [ "bank-commercial-mortgage", "dscr-commercial-loans", "credit-union-commercial-loans", "fannie-mae-small-loans", "bridge-loans" ], "facts": {} }, { "slug": "preferred-equity", "name": "Preferred equity", "url": "/loans/preferred-equity/", "family": "subordinate", "lender_type": "debt-fund", "eligible_property": [ "multifamily", "office", "industrial", "hotel", "retail", "mixed-use", "self-storage", "senior-housing", "student-housing" ], "purposes": [ "purchase", "refinance", "cash-out", "bridge", "construction" ], "rate_type": [ "fixed" ], "index_series": "UST10", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "varies", "prepayment": [ "minimum-interest", "exit-fee" ], "summary": "An investment in the property-owning company that gets paid a set return before the common equity sees anything. It fills the same gap as mezzanine debt, but as a member of the ownership entity with negotiated control rights instead of as a lender.", "recourse_note": "No personal recourse in the usual sense. The investor’s protection is the right to take over management of the company or force a sale when a trigger is hit, and sometimes a sponsor guaranty of bad acts.", "prepayment_note": "Redeeming early usually triggers a minimum multiple or a minimum return on the invested amount.", "best_for": [ "A senior loan that bans mezzanine debt or pledges of ownership but allows a new equity member with lender consent.", "Sponsors who would rather give up some control rights than add another lender and intercreditor agreement.", "Recapitalizations where a partner is leaving and the sponsor needs capital that ranks ahead of the remaining owners." ], "avoid_if": [ "You are not prepared to hand over management if the property misses its targets.", "A supplemental loan or a larger senior loan can fill the gap at a lower total cost.", "The operating agreement already has partners whose consent you cannot get." ], "compare_with": [ "mezzanine-loans", "agency-supplemental-loans", "debt-fund-loans", "bridge-loans" ], "facts": {} }, { "slug": "sasb-loans", "name": "Single-asset single-borrower (SASB) CMBS", "url": "/loans/sasb-loans/", "family": "cmbs", "lender_type": "cmbs", "eligible_property": [ "office", "industrial", "hotel", "multifamily", "retail", "self-storage", "mixed-use", "senior-housing", "student-housing" ], "purposes": [ "purchase", "refinance", "cash-out" ], "rate_type": [ "floating", "fixed" ], "index_series": "SOFR30", "spread_bps": null, "spread_basis": null, "indicative_rate": null, "limits": { "size_min": null, "size_max": null, "max_ltv": null, "max_ltv_cash_out": null, "max_ltv_alt": null, "min_dscr_alt": null, "combined": false, "max_ltc": null, "min_dscr": null, "min_debt_yield": null, "term_years": { "min": null, "max": null }, "amortization_years_max": null, "timeline_days": { "min": null, "max": null } }, "typical": null, "stand_in": null, "recourse": "non-recourse", "prepayment": [ "spread-maintenance", "open", "defeasance", "yield-maintenance" ], "summary": "A large loan on one property or one sponsor’s portfolio that is securitized on its own instead of being pooled with other borrowers. Bond investors underwrite the single asset directly, so the loan is sized and structured around that asset and its sponsor.", "recourse_note": "Non-recourse to a single-purpose borrower, with a carve-out guaranty from a creditworthy sponsor entity.", "prepayment_note": "Floating SASB loans usually carry spread maintenance for an initial period, then open prepayment. Fixed SASB loans follow conduit-style lockout and defeasance or yield maintenance.", "best_for": [ "Trophy or institutional assets and large portfolios too big for one balance-sheet lender to hold.", "Sponsors who want floating-rate, interest-only debt with extension options on a big stabilized or lightly transitional asset.", "Borrowers who want bond-market pricing on one strong asset without being pooled with weaker loans." ], "avoid_if": [ "The loan is middle-market or small: SASB execution is built for large single exposures.", "You need a lender who will renegotiate quickly; changes run through a servicer and bondholder consents.", "The asset’s story is complicated enough that a private debt fund will pay more for it than the bond market." ], "compare_with": [ "cmbs-conduit-loans", "life-company-loans", "debt-fund-loans", "bank-commercial-mortgage", "mezzanine-loans" ], "facts": {} } ] }