Arbor’s Fannie Mae Multifamily suite of green financing solutions includes options for acquisition, refinance, and supplemental financing.
Green Financing solutions create a “triple bottom line” by supporting increased cash flows, better quality housing, and reduced energy and water usage.
|Minimum Loan Amount||$750,000.|
|Loan Term||Up to 30 years.|
|Amortization||Up to 30 years. Interest-only options also available.|
|Minimum DSCR||Green Rewards: 1.25 Conventional, 1.20 Affordable
Green Building Certification Pricing Break: 1.25 Conventional, 1.20 Affordable
|Maximum LTV||Up to 80%|
|Rate Structure||Fixed- and adjustable-rate options available.|
|Interest Accrual Method||30/360 and Actual/360.|
|Eligible Properties||Conventional, Affordable, Senior, Military and Cooperative properties nationwide. Borrowers must commit to installing capital improvements that target a 30% or more reduction to the whole property’s annual energy or water use.|
|Eligible Borrower||Single Asset Entity.|
|Occupancy Requirements||85% physical occupancy for 90 days. 70% economic occupancy required.|
|Tax & Insurance Escrows||Monthly deposits required.|
|Replacement Reserves||Monthly deposits required. Underwritten at a minimum $250 per unit per annum.
The cost of the agreed upon property improvements will be escrowed at 100% until completion.
|Recourse||Non-recourse available, with standard carve-outs for “bad acts” such as fraud and bankruptcy.|
|Commercial Space||Maximum 35% of net rentable area and maximum 20% of effective gross income.|
|Assumable||Subject to approval and 1% fee.|
|Required Reports||Appraisal, Property Condition Assessment and Phase I Environmental. A High Performance Building report (HPB) is required. Fannie Mae reimburses 100% of the cost for the HPB subject to the loan closing.|
|Prepayment||Yield Maintenance and other declining prepayment options are available.|
|Subordinate Financing||Not allowed without written approval.|
|Pricing||Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.|
|Rate Lock||30- to 180- commitments. Early/extended rate lock options available.|
|Application Deposit||$30,500. Covers estimated processing and legal fees.|
|Origination Fee||Minimum 1%. Par pricing available.|
|Good Faith Deposit||2% of loan amount, due at rate lock, but refundable.|