Name: Calibre Commercial Inspections
Address: 10400 Overland Road, Ste 250, Boise, ID, 83709, US
Telephone: +1-208-305-6245

Why it matters

Lenders size reserves from the property condition report and review them over the loan term. Higher reserves reduce cash flow but protect the asset. Servicers may adjust the amount using updated condition reports.

Source: mf.freddiemac.com

Where we discuss it

Related terms

Repair Reserve: A repair reserve is money a borrower deposits at closing to pay for specific property repairs required by the lender, such as those listed in Freddie Mac's Letter of Commitment.
Long-Term Costs: Long-term costs are opinions of cost for the anticipated replacement of building systems and components over an evaluation period set by the user.
Capital Needs Assessment (CNA): A capital needs assessment is a physical inspection and cost forecast of a multifamily property's repair and replacement needs, submitted through HUD's CNA e-Tool for HUD-related transactions.
Property Condition Report (PCR): A property condition report is the written work product of a property condition assessment, documenting the findings and opinions developed from the walk-through survey, document review, interviews and opinions of cost for suggested remedies.

Full glossary

Replacement Reserves

Why it matters

Where we discuss it

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