FANNIE MAE DUS®
Choice Refinance
Arbor’s Choice Refinance product offers a streamlined refinance execution for Fannie Mae Portfolio Mortgage Loans in good standing.
| Loan Amount | No minimum loan amount (subject to change) |
| Loan Term | Standard DUS options available (5- to 30-year terms) |
| Amortization | Generally 30 years |
| Minimum DSCR | 1.25x DSCR calculated according to standard DUS underwriting guidelines |
| Maximum LTV | 80%; if cash-out, 75% |
| Rate Structure | Fixed- and adjustable-rate options available |
| Pre-Review Mortgage Loans | Prereview mortgage loans are no longer prohibited for Choice Refinance loans; generally, no prereview is required if the prereview category for the portfolio mortgage loan was previously approved by Fannie Mae |
| Benefits | Benefits include:
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| Tax & Insurance Escrows | Monthly deposits required; may be waived if certain criteria are met |
| Replacement Reserves | Underwritten at a minimum $250 per unit per annum |
| Recourse Requirements | Nonrecourse except for standard carve-outs |
| Prepayment | After the expiration of the yield maintenance period, the required 1% prepayment premium may be reduced or waived in certain circumstances; prepayment premium due may be paid from the proceeds of the new loan |
| Assumable | Subject to approval and 1% fee |
| Supplemental Financing | DUS supplemental loans are permitted after the Choice Refinance loan has been in place for one year |
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