FANNIE MAE
Green Financing®
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.
| Great Incentives |
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| 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 |
| Accrual | 30/360 and Actual/360 |
| Eligible Properties | Conventional, affordable, seniors, military and cooperative properties nationwide are eligible (Manufactured Housing Communities are not eligible); borrower must commit to improvements projected to reduce the whole property’s annual energy and/or water usage by at least 30%, of which a minimum of 15% must be attributable to projected savings in energy consumption |
| 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 | Nonrecourse 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, Phase I Environmental and a High Performance Building (HPB) report; 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-day 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 |
| Verification of Property Improvements | Property improvements must be completed within 12 months; lender will verify completion of the agreed-upon property improvements; borrower must report the property’s annual energy performance metrics, including ENERGY STAR score |
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