Special Report: Spring 2023

Special Report: Spring 2023 The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.   Key Findings: The sustainability of consumer financing and Read the full article…

Investment

Arbor’s Special Report Spring 2023

The rental housing sector is well-insulated but not immune to market forces even as the economy edges into correction territory, Arbor Chairman and CEO Ivan Kaufman and Chandan Economics Founder Sam Chandan demonstrate in the findings of Arbor’s Special Report Spring 2023.

Articles

Renting On Credit: New Platforms Modernize Monthly Multifamily Transactions

Until recently, full-scale optimization has skipped over the basic monthly rental payment transaction, with 78% of more than 100 million renters using paper checks. But now, two programs, backed by global leaders in financial services, are incentivizing tenants to pay the rent on credit, with perks like automatic credit reporting and points towards future purchases.

Articles

Top Markets for Renters Under 30

Renters 30 years of age and under, who now make up slightly more than one-quarter of the heads of households of rental units, are bolstering housing demand in markets known for their affordability and livability.

Press Releases

Arbor Realty Trust, Inc. Completes $315 Million Freddie Mac Q Series Securitization

UNIONDALE, NY, December 15, 2022 (GLOBE NEWSWIRE) – Arbor Realty Trust, Inc. (NYSE:ABR) (“Arbor,” “our,” or “we”) today announced the completion of an approximately $315 million loan securitization through Freddie Mac’s Q Series securitization program (the “Securitization”). Arbor’s affiliated entity Arbor Realty SR, Inc. originated the loans and was the loan seller for the Securitization. The Securitization is Arbor’s first Read the full article…

Articles

Five Benefits of Making Multifamily Investing Part of Your Portfolio

Multifamily investing involves the purchasing of properties with rentable housing units. In these types of investments, a group of investors often works together to mitigate costs, split profit shares, and reduce risk. Multifamily properties include apartment complexes, condo buildings, and townhouses, among other property types. When investing in multifamily properties is researched and undertaken prudently, it can generate steady and reliable income streams in all economic cycles.

Analysis

Arbor’s Top Articles of 2022: A Banner Year for Multifamily

After taking a pause during the peak of the COVID-19 pandemic, the U.S. multifamily market experienced a banner year in 2022. Throughout the year, Arbor continued to provide unique research and insights into our markets. Here’s a look at our top Arbor research articles from 2022, in case you missed them.

GENERAL: 800.ARBOR.10

Fannie Mae DUS®

Adjustable Rate Mortgage (ARM) 7-6

Arbor’s DUS ARM 7-6 product offers low-cost financing with an initial interest rate lower than available fixed rates, a maximum interest rate that is set upon loan origination, and the ability to convert to fixed-rate financing.

Loan Amount $750,000 minimum.
Loan Term 7 years.
Amortization Up to 30 years. Interest-only option is available subject to meeting eligibility criteria.
Minimum DSCR 1.00 at Maximum Interest Rate.
Maximum LTV Up to 80% LTV.
Interest Rate Limits Maximum ARM rate set at rate lock with the cost of the interest rate CAP included. The interest rate will reset every 30 days based on the applicable one-month SOFR yield. 1% maximum increase or decrease to rate at each ARM change. Maximum lifetime interest rate to Borrower capped at 6%, plus the guaranty fee, plus the servicing fee.
Rate Structure Pricing is based on a margin plus the current one-month SOFR.
Eligible Properties Mortgage loan for the acquisition or refinance of multifamily properties.
Eligible Borrower Single Asset Entity.
Occupancy Requirement 85% physical occupancy, 70% economic occupancy; 90% if loan amount is under $3,000,000.
Tax & Insurance Escrows Monthly deposits required.
Replacement Reserves Underwritten at a minimum $250 per unit per annum.
Recourse Typically non-recourse with standard carve-outs for “bad acts” such as fraud and bankruptcy. Loans less than $3M may be recourse (depending on MSA).
ARM Look Back 15-day look back for ARM adjustment.
Commercial Space Maximum 35% of net rentable area and maximum 20% of effective gross income.
Required Reports Appraisal, Property Condition Assessment, Phase I Environmental.
Prepayment Lockout for one year followed by a 1% prepayment premium during the ARM period. No prepayment premium during the last three months of ARM term.
Assumable Subject to approval and 1% fee (non-recourse loans only).
Supplemental Loans Not permitted prior to conversion to fixed rate. The ARM execution is eligible to be used for approved Supplemental Loans.
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.
Accrual Actual/360.
Rate Lock 30-day commitments are available for an additional cost.
Application Deposit $20,500. Covers estimated processing and legal fees.
Origination Fee Minimum 1%.
Good Faith Deposit 2% of loan amount.
Conversion to Fixed Rate Any time beginning on the first day of second loan year and ending on the first day of the sixth loan year. The borrower may convert to either a 10/9.5 or a 7/6.5 fixed yield maintenance loan. No prepayment charged upon conversion. Conversion requires minimal re-underwriting. Loan amount cannot be increased, but borrower may request a Supplemental Loan. No change to guaranty and servicing fees upon conversion.

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