Articles

Top SFR Annual Rent Growth Markets

Even as rents retreated elsewhere, single-family rentals (SFR) have continued to outperform all other housing sub-types, exceeding the all-property type national average in 17 consecutive months through February 2024, according to Zillow’s Observed Rent Index (ZORI). Annual SFR rent growth has seen substantial gains in many metropolitan areas since national rent growth peaked in March 2022. In this deep dive, the Chandan Economics and Arbor Realty Trust research teams pinpoint the metropolitan areas where SFR rents are rising the fastest.

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Arbor’s New True Colors Show Our Creativity and Green Roots

For more than 30 years, Arbor has been committed to growing financial partnerships that meaningfully impact communities nationwide. From planting trees to celebrate closed loans to supporting environmental organizations, our work has always been a win-win for our financial partners and the planet. But just as leaves change with each passing season, Arbor’s branding is evolving to seize the moment by embracing our roots with True Colors.

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Five Advantages of Adding Fannie Mae Green Rewards to a Multifamily Loan

Since the Fannie Mae Green Rewards program launched in 2015, green financing has become a mainstay of commercial real estate. In addition to reducing the environmental impact of multifamily housing, the Green Rewards program creates a triple bottom line with increased cash flows, higher quality housing, and lower energy and water usage. With a high upside and little downside, the program is well worth multifamily borrowers’ consideration.

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CRE Solutions for a Greener Planet Build Momentum

From California wildfires to rising sea levels to Florida hurricanes, the direct and indirect risks of climate change have grown in recent years, making a more substantial impact on the multifamily sector. As the need for sustainability becomes increasingly apparent, lawmakers and lenders have advanced programs and policies that show “going green” is a win-win.

Current Reports

Affordable Housing Trends Report Spring 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. Arbor’s Affordable Housing Trends Report Spring 2024, developed in partnership with Chandan Economics, examines the major policies and programs shaping the marketplace at a time when overdue federal funding expansions have increased agency budgets.

Articles

What Is Driving Lifestyle Renter Demand?

Lifestyle renters — those who have the means to own but prefer to rent or are willing to pay more for apartments with amenities — have become a key driver of rental demand in single-family rental homes, build-to-rent communities, and other types of high-quality multifamily housing. With this small yet influential demographic growing, our research teams examine and explain the factors driving lifestyle renter demand.

General: 800.ARBOR.10

Home | Fannie Mae | Moderate Rehabilitation (Mod Rehab) Supplemental
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FANNIE MAE DUS®

Moderate Rehabilitation (Mod Rehab) Supplemental

Arbor offers subordinate financing options for multifamily properties that have completed moderate rehabilitation.

Loan Amount 5-30 years; must be coterminous with the senior mortgage loan
Amortization Up to 30 years
Interest Rate Fixed and variable rate options available
Maximum LTV Combined LTV as high as 75%, depending upon asset class and use of proceeds; may be higher for Multifamily Affordable Housing properties and assumptions
Minimum DSCR Combined DSCR as low as 1.25x, depending upon asset class and use of proceeds; may be lower for Multifamily Affordable Housing properties
Mod Rehab Supplemental Mortgage Loan Timing Within 36 months of origination of the Mod Rehab first mortgage loan; no one-year waiting period
Benefits
  • The Moderate Rehabilitation Supplemental Mortgage Loan is excluded from the
    one Supplemental Loan rule
  • The loan sizing and pricing is comparable to the first lien mortgage loan
  • Lower cost than refinancing
  • Access to additional capital
  • Certainty of execution
  • Speed in processing and underwriting
Eligiblity
  • Stabilized Conventional, Multifamily Affordable Housing, Seniors Housing,
    Student Housing Properties, and Manufactured Housing Communities
  • First Mortgage Loan identified as Moderate Rehabilitation
  • Existing Fannie Mae fixed-rate or adjustable-rate mortgage loans
  • Arbor must be the servicer of the existing Fannie Mae Mortgage Loan
  • Fannie Mae must be the only debt holder on the property
Rate Lock Standard Rate Lock
Accrual 30/360 and Actual/360
Recourse Nonrecourse execution with standard carve-outs required for “bad acts” such as fraud and bankruptcy
Escrows Replacement reserve, tax and insurance escrows are typically required, based on the resulting tier of the combined preexisting mortgage loan and Moderate Rehabilitation Supplemental Mortgage Loan
Third-Party Reports Standard third-party reports, including Phase I Environmental Site Assessment, and a Property Condition Assessment, may not be required if certain conditions are met
Assumption Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience
Tier Dropping Permitted for fixed rate Moderate Rehab Supplemental Mortgage Loans
Rehabilitation Requirements An average of at least $10,000 per unit of property improvements
Verification of Property Improvements Lender must document all completed rehabilitation work and verify its completion through a site inspection if the work is not performed pursuant to a Completion/Repair Agreement or a Rehabilitation Reserve Agreement

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ARBOR.COM | 800.ARBOR.10
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