FANNIE MAE arm 7-6
TM
Beech Street is now Capital One Multifamily Finance and our commitment to customer service is even stronger.
Capital One Multifamily Finance provides an array of financing solutions for multifamily investors that includes acquisitions,
refinancing, and new development. We offer a wide range of Fannie Mae, Freddie Mac, and FHA programs nationwide as well
as balance sheet products in selected markets for construction, bridge, and term loans. This gives us the breadth of resources
to structure transactions that closely meet the needs of our customers. We take pride in delivering “good enough just isn’t”
service at every stage of the lending process, from origination and underwriting to closing and beyond.
TERMS
Term
Rate Lock
•7-year term
•30-day commitments available
Interest Accrual
Prepayment Provisions
•Actual/360 accrual basis
•One-year lock-out followed by a 1%
prepayment premium thereafter
Amortization
•No prepayment premium during the
last 3 months of the loan term
•Up to 30 years
•Interest-only option is available subject
to meeting eligibility criteria
Index
• 1-month LIBOR
Look Back
•15 day look-back
Interest Rate
Interest rate adjusts based on changes
to 1-month LIBOR and is equal to the
index plus a margin, subject to the
following limitations:
•Maximum monthly interest rate
adjustment of 1% up or down
•Maximum lifetime interest rate ceiling
up to 7.5%, established at rate lock
Conversion to Fixed Rate
ARM 7-6 allows the borrower to convert
the Mortgage Loan to a fixed rate at any
time beginning on the first day of the
second loan year and ending on the first
day of the sixth loan year.
•No prepayment premium is charged
at the time that the Mortgage Loan converts.
•Conversion requires minimal
re-underwriting; lender determines
that the current NOI can support
the new fixed rate.
•There is no increase in the loan
amount; however, the borrower may
request a Supplemental Mortgage
Loan, subject to meeting eligibility
criteria. There is no change in the
guaranty or servicing fees when the
loan converts.
OVERVIEW
• A variable-rate financing option
with embedded caps and an
option to convert to a Fixed
Rate Mortgage Loan
Benefits
• Low-cost financing with initial
interest rates lower than fixed
rates
• Maximum interest rate is set
at loan origination
• Ability to convert to fixed rate
financing
Eligibility
• Mortgage Loans for the acquisition or refinance of
multifamily properties, including
manufactured home communities
• Up to 80% LTV To learn more about how the
Capital One team members will
roll up their sleeves for your
business, contact
Capital One Multifamily Finance
7600 Wisconsin Ave., Suite 800
Bethesda, MD 20814
855-we-do-more (855-933-6667)
[email protected]
www.capitalonemultifamily.com
Products and services provided by Capital One Multifamily Finance LLC,
wholly owned subsidiary of Capital One N.A., Member FDIC.
© 2014 Capital One. All rights reserved.