Arbor’s Strength in FHA Multifamily Lending Gives Borrowers an Edge
Did you know? As a longstanding U.S. Department of Housing and Urban Development (HUD) Federal Housing Administration (FHA) Multifamily Accelerated Processing (MAP) lender, Arbor has closed more than 250 FHA loans – and that count is climbing. In the first quarter of 2023, amidst a volatile market, Arbor worked with borrowers to secure more than $148 million in FHA financing.
We Support HUD’s Mission
HUD’s mission is “to create strong, sustainable, inclusive communities, and quality affordable homes for all,” and Arbor Realty Trust stands in its support. Our teams work closely together to connect borrowers with the financing they need to improve Americans’ access to housing. For more than 25 years, Arbor has been one of the leading U.S. multifamily lenders. We have a proven track record of delivering top-tier executions with excellent terms and highly competitive rates.
Now Is the Time to Pursue FHA Financing
Arbor’s Brian Blue, Managing Director, FHA Lending, says now is the right time for qualified multifamily borrowers to begin the process to secure an FHA multifamily loan. With interest rates on the rise, loan proceeds have become more favorable. The broader timelines of these types of loans also grant borrowers a longer time horizon to assess the market’s direction before locking in their rate, guided by the expert counsel of their Arbor originator.
“In this type of environment, every basis point counts,” said Blue. “We’re really digging in, going the extra mile to get every penny of value for our borrowers.”
FHA loans already have some of the best terms available to multifamily investors, including favorable interest rates, lower down and monthly payments, long amortizations, and flexible debt service coverage ratios (DSCR). Late last year, FHA added another incentive to its loan programs when it increased the frequency of allowable surplus cash distributions in most FHA-insured multifamily mortgages from biannually to monthly.
Arbor Is Effective at Penciling Deals in All Cycles
Arbor originators are innovative, entrepreneurial, and creative in getting deals closed. From screening to firm commitment to closing, our team digs deep for our clients and explores all available product options and combinations to achieve the borrower’s goals. Arbor’s underwriters excel at getting our borrowers across the finish line as quickly as possible in all cycles. For example, Garth Davis, SVP, Sales, who was featured in one of our recent Success Stories, secured a borrower a firm commitment from HUD for an FHA 223(f) loan within 30 days, minimizing interest rate volatility and maximizing proceeds.
“We provide that level of TLC where we develop a connection with the borrower,” said Arbor’s Brett Neely, Senior Vice President, FHA Chief Underwriter. “We want to make sure our borrowers’ eyes are completely open.”
Our Relationship-Driven Approach to Lending
At Arbor, no two deals are alike, and no two borrowers are alike. “We take a bespoke approach to FHA lending,” said Blue.
Arbor’s FHA team is dedicated to delivering best-in-class customer service. We maintain open dialogues, behave transparently, ask tough questions, advocate for our borrowers, and guide them expeditiously across the finish line. We leverage our strong partnership with a network of third-party vendors, including appraisers, market analysts, and engineering experts, to help our clients secure the best available pricing. Our growing list of repeat borrowers is proof positive of our winning formula.
Explore Your Lending Options with Arbor
Arbor is licensed by HUD to administer FHA mortgage insurance programs for long-term, non-recourse financing for market-rate and affordable apartments and cooperatives, assisted living facilities, skilled nursing facilities, and seniors housing. We provide access to many of the leading types of FHA multifamily loans, including:
Arbor was named a Top 20 FHA Lender in 2022 and is an approved FHA Multifamily Accelerated Processing (MAP) Lender. Our experienced team has a strong reputation for delivering smooth and successful borrowing experiences.
Contact us today to connect with one of our expert loan originators.
Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily, single-family rental, and affordable housing financing options and view our other market research and multifamily posts in our research section.