Commercial Mortgage Group - Mortgage Brokers

DUS Plus
Home | Contact Us | R.E. Links | Programs | Submission requirments | BLOG | Articles

Fannie Mae DUS Plus

DUS PLUS is mezzanine financing combined with a newly originated conventional and already attractive fixed rate Fannie Mae DUSTM loan from $3 to $25 million.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.
 
Product overview

Eligibility
DUS quality conventional multifamily properties

Loan amounts
$187,500 (minimum)
10% of the underwritten value (maximum)
The underlying DUS loan must be greater than $3,000,000 and less than $25,000,000.

Term
Initial 5 year term. Extensions up to 10 year term available.

Amortization
Amortization matches that of the associated DUS loan.

Interest rate
Mezzanine loan has a fixed rate for the first 5 years and then converts to a variable rate based on a pre-determined 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.

Assumption
Assumable with lender approval and a 1% fee

Supplemental mortgages   
Available after 1 year (up to 2 available, plus 1 more upon sale and assumption)

 

Back to Programs