Small Balance Lending

Eyzenberg & Company is a direct correspondent lender focused on conventional and select affordable and seniors multifamily housing. All loans are non-recourse with standard “bad boy” carve-outs and available nationwide.


Eligible Properties:
  • Properties with 5 or more units or Manufactured Housing Communities with 50 pads or more
  • Properties with tax abatements and Section 8 vouchers
  • Seniors housing properties with no resident services
  • Low-Income Housing Tax Credit (LIHTC) properties with Land Use Restriction
  • Agreements (LURAs) in the extended use period or in the final 24 months of the initial compliance period (in both cases, provided the tax credit investor has exited the project)
Loan Amounts:
$1-$6MM in all markets
$6 - $7.5MM in top and standard markets for properties with 75 units or less
5-year hybrid (fixed to float) 4.13% - 5.05% 5-year fixed rate 4.18% - 4.85%
7-year hybrid (fixed to float) 4.35% - 5.00% 7-year fixed rate 4.35% - 5.00%
10-year hybrid (fixed to float) 4.63% - 5.15% 10-year fixed rate 4.63% - 5.15%
Max LTV:
80% LTV (on acquisition and refinance after 2 years of ownership)
100% LTC (on a refinance with less than 2 years of ownership)
75% LTV on acquisition and 70% on refinances in small markets  
Min DSCR: 
Top Markets - 1.20x
Standard Markets - 1.25x
Small Markets - 1.30x
Very Small Markets - 1.40x
Adjustable Rate:
5-, 7- or 10-year fixed which then float for the remainder of the 20-year term. Adjusts at 6 months LIBOR +275bps, 5% lifetime cap
Fixed Rate:
5-, 7-, or 10-year fixed
30 year (standard), 20 & 25 year available
Interest Only:
Partial and full-term interest only available on all products
Declining schedules & yield maintenance
90% physical occupancy for the trailing 3-month average prior to Underwriting
85% physical occupancy for the trailing 3-month average prior to Underwriting if the subject property has any of the following characteristics:
i. Recently developed or renovated in a Top Market
ii. Property has less than 30 units
iii. Acquisition with all of the following:
  • Acquiring sponsorship has more experienced than prior ownership
  • Appraised occupancy and/or rents materially higher than in place
  • No volatile historical occupancy swings
  • No history of serious crime at the property
  • Application Fees: $4,500 (Top Markets) / $8,500 (Standard Markets)
  • Minimum FICO 650
  • Net worth equivalent to the loan amount, 9 months of DS in liquidity
  • Mixed-used properties with commercial income up to 40% are eligible
  • All loans are assumable
  • Capital improvements may be included
  • Real estate tax escrow deferred for deals with 65%
  • LTV or less Insurance escrow deferred
Top Markets:
New York City/New Jersey metropolitan, Boston, Washington DC, Chicago, Los Angeles, San Diego, Orange County, San Francisco, San Jose, Oakland, Minneapolis, Portland, Seattle, Miami and Denver.
Standard Markets:
Baltimore, Sacramento, Salt Lake City, Phoenix, Atlanta, Dallas/Ft. Worth, St. Louis, Indianapolis, Cincinnati, Albany, Bakersfield, Birmingham, Dayton, Hartford, Jacksonville, Knoxville, Louisville, Providence, Raleigh, Rochester, Richmond, Riverside, Tucson, Honolulu, Norfolk, Kansas City, Las Vegas, Philadelphia, Charlotte, Columbus, Cleveland, Oklahoma City, Pittsburgh, Memphis, Nashville, Houston, San Antonio, Austin, Richmond, Albuquerque, New Orleans, Orlando, Tampa, Detroit, Milwaukee, Tulsa, Buffalo, Omaha, Fresno
Benefits over a CMBS Loan:
  • Pricing is substantially lower
  • Flexible stepdown prepayment options, not defeasance
  • 80% LTV is achievable for refinance and acquisition (including cash out scenarios) in all top and standard markets
  • Substantially lower closing costs, lighter versions of PCA and Appraisal, no Phase 1
  • Rate quoted in term sheet is locked for 45 days
  • Annual vs quarterly reporting
  • No risk of B-piece kick out
Benefits over A Bank Loan:
  • All loans are non-recourse
  • 80% LTV is achievable for refinance and acquisition (including cash out scenarios) in all top and standard markets
  • Nationwide lending
  • Up to 10-year fixed rate terms available in all markets
  • Standard 30-year amortization schedule
  • Tax returns are not required
  • No requirements to transfer or maintain operating or saving accounts
Special situations that can still qualify:
  • Commercial income less than or equal to 50%
  • Property has 3 consecutive months of physical occupancy below 85%
  • FICO score below 650
  • Prior bankruptcy, with reasonable explanation and conservative loan metrics
  • Violent or major drug related crime issues
  • Lack of warm body guarantor
  • Non-US Citizens by providing two times the net worth and liquidity requirements
  • 50% or less tenant concentration of students, military, single employer or corporate
  • Borrower net worth of liquidity below requirements
  • Deferred maintenance and capital expenditures by holding back up to 10% of the loan amount