Wells Fargo Raises Minimum Deal Size

Wells Fargo had been doing their portfolio program for deals as low as $3MM. They have now officially moved their minimum deal size for this program to $5MM.

Their current spread for a 3 year deal is 320 (that rate today is under 6%) and for a 5 year deal is 340 (6.50% today). They will go up to 75% loan to value with a 30 year amortization and of course this program is non-recourse.

The only option today for a non-recourse deal under $5MM is a life company. That means a loan to value of 65% at best and that is for the better quality deals. If the deal is not top quality then the life company will offer a lower LTV or will just pass.

National Cooperative Bank will do smaller deals (from $1MM to $15MM) but they want at least some level of recourse for a 75% loan to value. Their deal is a 9 year loan with a rate reset every 3 years at 250 over the 3 year treasury (but not less than 6.25%).

For Multi-Family deals Fannie Mae and Freddie Mac are still the best options. They can get to 75% and 80% loan to value. Florida has been put on Fannie Mae’s pre-screen list. Every loan application issued for a deal in Florida is now pre-screened by Fannie Mae.