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 |
| Minimum Mezzanine Loan Amount | $2,500,000 |
| 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 Minimum DSCR Typically 1.25 for First Mortgage and 1.10 Combined |
| 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 80% economic |
| Tax & Insurance Escrows | Monthly deposit required |
| Replacement Reserve | Per Engineer Report |
| Recourse | Generally non-recourse with standard exceptions for fraud and misrepresentation among other carve outs |
| 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 all estimated underwriting costs (including processing fee) |
| Processing Fee | 5,000 non-refundable |
| Origination Fee | Minimum 1%. Par pricing available on first mortgage |
| Legal/Closing Fee | Arbor’s counsel fee to be determined based on transaction |
| Good Faith Deposit | 2% of loan amount |
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