Metmor Financial announces new program for lending

Real Estate Weekly, Oct 14, 1992

Metmor Financial, a wholly-owned subsidiary of Metropolitan Life Insurance Company, announces that they have a new lending program for multifamily properties nationwide. The program will focus on loans from $1 million to $5 million. Loans up to $10 million will be considered on a case-by-case basis.

The loan program wilt focus on Class B and C properties. Metmor is offering both a 10-year fixed rate and 25 year self-liquidating fixed rate loan. The rate will be set at 300-325 basis points over the 10 year Treasury and 30 year Treasury respectively. The 25 year loan requires a minimum debt coverage ration of 1:20 and the 10 year loan requires a 1.25, with 75 percent maximum loan-to-value for both terms.

The loan program will focus on Class B and C properties. Metmor is offering both a 10-year fixed rate and 25 year self-liquidating fixed rate loan. The rate will be set at 300-325 basis points over the 10 year loan requires a 1.25, with 75 percent maximum loan-to-value for both terms.

The loans will be non-recourse, assumable, and pre-payable at anytime. An MAI appraisal and engineer/environmental report will be required, and Metmor will allow escrows for deferred-maintenance and replacement items.

Metmor expects the loans to commit in 45 to 60 days from the time they receive an application from a borrower, and closing must take place within 21 days from the acceptance of the commitment and rate-lock.

Metmor recently closed their first deal under this program which was a $2.5 million loan on a 226 unit garden apartment in Fort Wayne, Indiana. There is currently over $40 million under application with an application pending on an $85 million portfolio containing 14 properties.