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ARM 7-6 Term Sheet Fannie Mae’s 7-6 ARM product offers an initial low rate interest option with the ability to convert to a fixed rate loan and attain Supplemental Financing. ELIGIBLE PROPERTIES A Standard DUS Mortgage can be used for the acquisition or refinance of multifamily properties. ELIGIBLE BORROWERS Any creditworthy single-asset U.S. borrower with all U.S. principals is eligible. Foreign borrowers may also have ownership interests, subject to proper structuring of the borrowing entity. THIRD PARTY REPORTS Standard third-party reports – Appraisal, Phase I Environmental Assessment, and a Physical Needs Assessment – are required ACCRUAL BASIS Actual/360 LOAN TERM 7 year Term RATE LOCK 30-day commitments are available. Extended Rate Lock feature is also available. MAXIMUM LTV 80% MINIMUM DSCR 1.00x at the lifetime cap rate RECOURSE REQUIREMENTS Non-Recourse execution. Standard carve-outs to non-recourse for “bad acts” such as fraud are required. PROPERTY SEASONING New properties must have stabilized (typically 90% occupancy) for 90 days prior to funding. Pillar can offer bridge financing through its affiliate Guggenheim Commercial Real Estate. ESCROWS Replacement reserve, tax and insurance escrows are typically required for higher leverage transactions To learn more about the DUS product line, contact a Pillar representative INTEREST RATES Variable rate based on 30 day LIBOR. Maximum monthly interest rate adjustment of 1%. Maximum lifetime cap rate established at rate lock. LOAN AMOUNT $3 million minimum, no maximum AMORTIZATION Up to 30 years CONTACT CONVERSION TO FIXED RATE Any time beginning with the first day of the second loan year and ending on the first day of the sixth loan year the borrower may convert to a fixed rate loan. No prepayment charged upon conversion. PRICING Pricing is tiered and based on the risk attributes of the loan. ASSUMPTION DUS Loans are typically assumable, subject to Pillar’s review and approval of the new borrower’s financial capacity. PREPAYMENT PROVISIONS One-year lockout followed by a 1% prepayment premium thereafater. No prepayment penalty last 3 months of loan term SUPPLEMENTAL FINANCING Available This term sheet is only for the purpose of setting forth a basis upon which the parties may be agreeable to proceed toward the contemplated transaction, and is not intended to be a legally binding contract or to impose any liabilities or obligations on any party. The terms reflected in this term sheet are subject to change at any time in Pillar’s and/or its affiliates’ sole discretion (due to market conditions or otherwise) and do not constitute a binding offer to enter into the contemplated transaction. The contemplated transaction is subject to negotiation and execution of definitive documentation acceptable to the parties, and it is understood that this term sheet is not intended to set forth all of the terms of such definitive documentation.