How to use
Use this worksheet to size an agency multifamily supplemental loan against the seasoned senior and to identify which tier the deal prices into. Indicative outputs only, confirm sizing and pricing with the DUS or Optigo lender on every deal.
Section 1: supplemental sizing inputs
Supplemental loan sizing tests three constraints: combined LTV, combined DSCR, and program-specific seasoning. The supplemental sizes to the binding minimum.
- Existing senior balance (current outstanding principal).
- Existing senior rate and remaining term (for combined-DSCR math).
- Current appraised property value (recent appraisal).
- Current trailing-12 NOI.
- Months since senior origination (for seasoning test).
- Combined LTV cap (typically 75%-80%).
- Combined DSCR floor (typically 1.25x).
Section 2: supplemental sizing math
Worked example: $20M senior at 70% LTV originated 18 months ago. Property appraised at $34M. NOI grew from $2.0M to $2.4M.
Supplemental sizing, three-test math
| Test | Constraint | Calculation | Max supplemental |
|---|---|---|---|
| 1. Combined LTV | 75% | $34M × 75% − $20M | $5,500,000 |
| 2. Combined DSCR | 1.25x | $2.4M / 1.25 minus existing DS, capped supplemental DS, sized at supplemental rate | ~$7,900,000 |
| 3. Seasoning | 12 months | 18 months elapsed, passes | Eligible |
| Binding test | Test 1 (combined LTV) | Lowest of three | $5,500,000 |
Section 3: tier pricing lookup
Indicative tier thresholds (verify with DUS lender)
Section 4: tier optimization logic
- Always ask the DUS lender to quote multiple tiers at term-sheet stage.
- Calculate cash-on-cash and IRR under each tier scenario.
- Sponsors who plan to refi or sell within 3-5 years often prefer higher proceeds (Tier 2).
- Sponsors who plan long-term holds often prefer tighter rate (Tier 3 or 4).
Section 5, program-execution check
Before pricing the deal at standard agency tiers, check whether the deal qualifies for a tighter execution: MAH/TAH, Green Rewards, Near-Stabilization, or SARM.