America’s most attractive and reliable
multifamily loan execution just got even better. Introducing DUS PLUS…Mezzanine
financing the Fannie Mae way. DUS PLUS is mezzanine financing combined with a
newly originated conventional and already attractive fixed rate Fannie Mae DUS
loan from $3 to $25 million.
In addition to the speed, certainty of execution, and extraordinary customer service you've come to expect from PNC ARCS and Fannie Mae, DUS PLUS can now offer higher leverage (up to 85% combined LTV), a fast, reliable, simultaneous underwriting and closing for both loans, and the convenience of one stop shopping. Supplemental loans are also available and can be used to pay off the mezzanine loan as well as to provide future additional leverage.
No one has PNC ARCS' experience with Fannie Mae products. With over $18 billion in loan production, we're Fannie Mae1s #1 DUS lender year after year.
Beyond the benefits of any specific lending product, PNC ARCS' expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. And with specialists in affordable housing, seniors housing, student housing, manufactured housing communities, mezzanine/ bridge financing, FHA multifamily, and capital markets, we can help meet your most critical financial and timing needs. No one delivers more.
Product Overview
Eligibility DUS quality conventional multifamily properties. Underlying DUS loan must be
fixed rate.
Loan Amounts $187,500 (minimum)
10% of the underwritten value (maximum)
The underlying DUS loan must be greater than $3 million and less than $25
million.
Term Initial 5 year term with extension options that allow for a full term of 10
years. Underlying DUS loan may be for any standard term.
Amortization Amortization matches that of the associated DUS loan.
Interest Rate
Mezzanine loan has a fixed rate for the first 5 years. The interest rate during
the DUS Plus extension term will be the greater of the DUS Plus rate or a
variable rate based on a predetermined fixed spread to 3 month LIBOR.
Combined Debt Service Coverage 1.10x minimum
Combined Loan to Value 85% maximum
Personal Recourse Non-recourse with standard "Carve-Outs," including recourse if borrower declares bankruptcy
Prepayment 1 year lockout with a declining prepay schedule
Origination Fee 1% of the mezzanine loan amount
Third Party Fees All fees are collected in conjunction with the associated DUS loan.
Assumability Assumable with lender approval and a 1% fee
Supplemental
Mortgages
First supplemental loan associated with DUS loan must be used to pay off
mezzanine loan.