FANNIE MAE DUS®
Cooperative Apartment Financing
Arbor’s Cooperative Apartment Financing program provides blanket mortgage financing for cooperative multifamily housing.
| Loan Amount | $750,000 minimum. |
| Loan Term | 5 to 30 years. |
| Amortization | Up to 30 years. |
| Minimum DSCR | 1.0 for cooperative; 1.55 as market rental project. |
| Maximum LTV | 55% |
| Rate Structure | Fixed and adjustable rate options available. |
| Eligible Properties | Cooperative projects, minimum five units. |
| Eligible Borrower | Single Asset Cooperative Corporations. |
| Market Acceptance | Property must be located in an area evidencing strong market acceptance of cooperative housing. |
| Occupancy Requirement | 85% physical occupancy and 70% economic occupancy for 90 days prior to commitment date. |
| Tax & Insurance Escrows | Monthly deposits required. |
| Replacement Reserve | Underwritten at a minimum $250 per unit per annum. |
| Recourse | Non-recourse execution available with standard carve-outs for “bad acts” such as fraud and bankruptcy. |
| Commercial Space | Eligible |
| Required Reports | Appraisal, Property Condition Assessment and Phase I Environmental. |
| Prepayment | Loans may be voluntarily prepaid upon payment of yield maintenance. |
| Subordinate Financing | Available through Fannie Mae Supplemental Loan Program. |
| Pricing | Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV. |
| Rate Lock | 30- to 180- day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option. |
| Application Deposit | $20,500. Covers estimated processing and legal fees. |
| Origination Fee | Minimum 1%. Par pricing available. |
| Good Faith Deposit | 2% of loan amount, due at rate lock, refundable post-closing. |
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