Articles

How Multifamily Property Renovations Add Value and Marketability

The ideal time to renovate is when the rental market is strong. With high occupancy rates, borrowers are more likely to quickly realize returns on their multifamily property renovations through higher rents. However, renovating during a market downturn, when rents are often cheaper, inventory is higher, and materials are more affordable, is also a sound strategy.

Current Reports

Single-Family Rental Investment Trends Report Q2 2024

Quarter after quarter, the single-family rental (SFR) sector reaches new heights. From new construction to cap rates, Arbor’s Single-Family Rental Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, details how the sector’s healthy fundamentals create profound optimism in its long-term prospects.

Articles

Arbor Sponsors Smile Farms Golf Outing Supporting Local Employment Opportunities

Arbor, which takes pride in helping employees reach their full potential, was honored to sponsor and participate in Smile Farms’ 10th Anniversary Golf Outing on May 20 at the Plandome Country Club on Long Island, NY, benefiting the Long Island-based organization dedicated to advancing opportunities for people with disabilities.

Articles

New York State’s 2025 Budget Advances Affordable Housing Goals

In April, New York State Governor Kathy Hochul announced a landmark budget agreement heralded as a giant step for affordable housing. New York’s FY 2025 Enacted Budget includes several key policy changes that could create thousands of affordable housing units across the state.

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.

General: 800.ARBOR.10

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 1.0x for cooperative; 1.55x as market rental project
Maximum LTV 55% (on a market rental basis)
Rate Structure Fixed rate
Eligible Properties Cooperative projects, minimum five units, property condition rating of two or better, limited equity cooperative properties for low- and moderate-income families
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 Nonrecourse 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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