Fannie Mae Arbor 85 Preferred
Based on Arbor’s extensive experience with multifamily mezzanine finance, we now have a product with Fannie Mae where we merge the best elements of the Fannie Mae DUS program with the extra proceeds of mezzanine finance provided by Arbor Realty Trust.
Minimum Loan Amount | $25,000,000, smaller loan amounts may be considered. |
Minimum Mezzanine Loan Amount | $2,500,000, smaller mezzanine loan amounts may be considered. |
Loan Term | Up to 10 years Mezzanine loan must be conterminous with the Fannie Mae first mortgage |
Loan Purpose | Acquisition |
Amortization | Up to 30 years. |
Maximum LTV | Up to 85% Combined |
Rate Structure | Fixed rate options available |
Eligible Property | Multifamily |
Eligible Borrower | Single-asset entity required for DUS and Mezzanine loans |
Occupancy Requirement | 85% physical occupancy and 70% economic. |
Tax & Insurance Escrows | Monthly deposit required |
Replacement Reserve | Per Engineer Report |
Recourse | Generally non-recourse with standard carve-outs for “bad acts” such as fraud and bankruptcy. |
Commercial Space | Eligible, not to exceed 35% of GBA and 20% of EGI |
Collateral/Security | Fannie Mae first mortgage Arbor Realty SR, Inc. mezzanine loan up to 85% combined LTV Mezzanine secured by 100% pledge and assignment of all ownership interests in the property owner |
Required Reports | Appraisal, Property Condition Assessment, Phase I and Seismic Report |
Prepayment | Yield maintenance or defeasance |
Assumable | Subject to approval and 1% fee |
Supplemental Loans | Eligible for secondary financing after 12 months subject to a maximum 75% LTV and 1.30 DSCR Any supplemental loan must repay mezzanine loan |
Rate Lock | Standard 10-day rate lock period. Early and extended rate lock options available |
Application Deposit | $50,000. Covers estimated processing and legal fees. |
Origination Fee | Minimum 1%. Par pricing available on first mortgage |
Good Faith Deposit | 2% of loan amount |
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