$250,000 to $3,500,000
- Loans greater than $3,500,000 will be considered on a case-by-case basis
Bridge to stabilization, refinance, construction loan takeout, or sale
Multifamily (5+ units); includes multifamily mixed-use where multifamily component comprises 67% or greater of either the total existing rentable square footage or the stabilized project revenue.
LOAN-TO-VALUE (LTV) MAXIMUM
Maximum LTV ratios:
- As-is LTV: 75% (or 65% for cash-out refinance)
- LTC (loan-to-cost): 85%
- As-stabilized LTV: 70% (only applicable when reserves exist)
- As-is cumulative-loan-to-value (CLTV): 90%
Loan advance rates are contingent on loan terms, such as cash-out, loan strategy,
subordination, FICO, and other characteristics.
Six to 24 months; longer terms will be considered on a case-by-case basis.
OCCUPANCY/DEBT SERVICE COVERAGE RATIO
There is no requirement.
United States. Generally, primary and secondary MSAs (excluding South Dakota and
Minnesota). There will be an extra level of scrutiny on properties that greatly exceed the normal values of their submarket. Rural locations (defined in long-form guidelines) are excluded.
Generally loans with fixed note rates of 8.0% or higher.
Interest is on the full loan commitment.
A detailed scope of work is required. Loans with renovation reserves that exceed $500,000 or 50%+ of the total commitment will require a feasibility review and/or property condition report prepared by a Aryming-approved third-party vendor in order to determine whether the proposed budget and scope of work is appropriate.
We allow B-pieces, second liens, pari passu, or for the lender to take an investment position in Borrower Entity; however, such positions cannot be transferred or sold without Aryming approval and right of first refusal.
All subordinate liens must be co-terminus with or mature after the first lien.
Interest-only or amortizing loans are acceptable.
Recourse in the form of a personal guaranty is required. Personal guaranties are required from an individual or individuals with a minimum combined equity stake of 50% in the borrowing entity. Recourse will be joint and several.
Full recourse includes repayment, environmental indemnity, and completion guaranties for all renovation work.
May be allowed on a case-by-case basis.
Lender must use documents provided or approved by Aryming. For table funding, the documents will be in the lender’s name and then simultaneously assigned to Aryming. For funding into origination, the documents will be in Aryming’s name.
A preliminary title report is required. Prior to closing, a long-form title commitment with a final title policy or a closing protection letter (agent authorization letter in NY) with ISAOA language must be received.
Aryming purchases loans on a servicing-released basis and retains a sub-servicer.
- Loans greater than or equal to $1,500,000
- MAI appraisal required
- Loans under $1,500,000
- BPOs are not accepted
- Commercial valuations from a Aryming-preferred vendor are acceptable unless the complexity of deal warrants a full appraisal (determined on a case-by-case basis)
- Appraisals prepared by a licensed appraiser in the state of the subject collateral are accepted
- Loans with renovation reserves require appraisals for both as-is and
FUND CONTROL & RENOVATION MANAGEMENT
Aryming requires an approved third party to manage the renovation draw process, including inspections. Upon submission of draw requests (monthly), the approved third-party renovation management firm will conduct progress inspections and recommend approval for the release of funds. Aryming will hold renovation funds and reimburse the borrower for work completed.
Aryming will be the master servicer with a third party retained as the sub-servicer.
Individual or U.S. domiciled entity.
BORROWER/GUARANTOR CREDIT SCORE
Minimum credit score of 600 for the borrower/guarantor is required, but exceptions or mitigation may apply on a case-by-case basis.
GUARANTOR CREDIT SCORE
Average FICO score of the guarantor must be 600 or higher. Credit report dated within four months required.
Borrower and guarantor must both be at least one year removed from discharge/dismissal.
- Must demonstrate current or recent past experience with multifamily asset class
- Guarantor must submit a personal financial statement that includes a schedule of real estate
OFAC (BACKGROUND) CHECKS
- Required for all borrowers and guarantors.
- A Certificate of Good Standing as a U.S.-domiciled company is required.
- Aryming requires all of the following to be provided:
- ALTA 2006 long-form policy
- Minimum coverage of 100% of loan balance or maximum allowed
- Closing protection letter, addressed to originator and “its successors and/or assigns” (if applicable)
- Signed escrow instructions
- Copies of all title exceptions to review
- ALTA 9 endorsement
PROPERTY, CASUALTY, LIABILTY, AND OTHER INSURANCE
- The following conditions must be met:
- Coverage must equal the lesser of replacement cost or loan amount
- Lender must be listed as mortgagee, loss payee, or additional insured (ISAOA language)
- Coverage must include fire and extended perils, and other hazards customary to the area
- General liability coverage: $1,000,000 per occurrence and $2,000,000 in aggregate
- Flood insurance required for FEMA-designated special flood hazard area
- Storm, Hail, and wind coverage may be required
- Business interruption coverage may be required
- ALTA survey required on loans greater than or equal to $3,000,000 or as required by Aryming.
- All loans require an environmental screen that indicates no or low environmental risk. In some cases, a Phase I report will be required rather than an environmental screen.
- Unit mix, current rent roll, most recent property financials are required
PROPERTY CONDITION REPORT
- Required on loans greater than $3,000,000, or as required by Aryming.
- Zoning report or zoning letter issued by third-party or municipality is required in all cases where a recent or proposed change in use exists.
- These current, executed agreements are required (if applicable):
- Property management and leasing agreements
- Renovation contract
- Copies of at least two recent leases
- Assignment of leases and rents; assignment of property management and leasing agreements.
- Additional items may be required, on a case-by-case basis.