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 are 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 | Pre-Review Mortgage Loans are no longer prohibited for Choice Refinance Loans. Generally, no pre-review is required if the pre-review category for the Portfolio Mortgage Loan was previously approved by Fannie Mae. |
| Benefits | Benefits include:
|
| 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 | Non-recourse 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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