Articles

SFR East 2024: How Economics and Demographics Shape the Rental Market

IMN’s Single Family Rental Forum (East), the cornerstone gathering of the SFR industry, concluded on May 22, 2024, in Miami, FL. Over three days, 1,800 attendees listened to more than 280 speakers discuss all angles of the SFR industry. On the first day of the conference, Arbor’s Tres Seippel, Director, Construction Management, participated in a wide-ranging panel discussion examining economic and demographic forces influencing SFR and build-to-rent (BTR), which also featured Rick Dalton, President of the Dalton Group, Domonic Purviance of the Federal Reserve Bank of Atlanta, Wade McGuinn, CEO of McGuinn Hybrid Homes, and Heather Williams, VP at Willow Bridge Property Company.

Articles

Affordable Housing Market Snapshot — May 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. With more funding on the way, policymakers and private market advocates are pressing ahead with plans to add units to an increasingly tight housing market.

Articles

The Probability Renters Will Keep Renting Hits Record High

The average renter thinks there is a three-in-five chance they will still be in the rental market in 2027, according to the New York Federal Reserve’s recently released 2024 SCE Housing Survey. Compared to last year, the probability of the average renter not becoming a homeowner in the next three years was up 4.3 percentage points, reaching its highest mark since the study began in 2015.

Current Reports

Small Multifamily Investment Trends Report Q2 2024

Small multifamily’s performance continues to conform to pre-pandemic norms typically seen before the historic boom years of 2021 and 2022. In the first quarter of 2024, cap rates and asset prices both improved quarter-over-quarter, Arbor’s Small Multifamily Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, has found. The subsector’s fundamental strength will support steady growth amid tight credit conditions until interest rate relief invites increased investment activity.

Analysis

U.S. Multifamily Market Snapshot — May 2024

Key fundamentals of the U.S. multifamily remained strong to start 2024. Despite fears of oversupply, rent growth remained stable and vacancy rates remained near historical lows.

Articles

Arbor Marketing Campaign Wins Two Awards at Industry Gala

For more than 30 years, Arbor has been committed to building strong bonds with clients that lead to mutual success. This philosophy is at the heart of a unique Arbor marketing campaign, The Art of Growing Financial Partnerships, which received two awards at the 30th Annual Financial Communications Society (FCS) Portfolio Awards Gala in New York City on May 2. The campaign, which was featured in two private jet terminals, used original stained-glass pieces to build brand awareness among high-net-worth travelers.

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.

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 Mortgage Loan amount shall not exceed that of a fixed-rate Mortgage Loan with similar terms.
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 $6M
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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