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GENERAL: 800.ARBOR.10

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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