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||No minimum or maximum.|
|Loan Term||Up to 30 years.|
|Amortization||Green Rewards: Up to 30 years. Interest-only options also available.
Green Preservation Plus: Up to 40 years. 30 years for balloon structures. Interest-only periods not permitted.
|Minimum DSCR||Green Rewards: 1.25 Conventional, 1.20 Affordable
Green Building Certification Pricing Break: 1.25 Conventional, 1.20 Affordable
|Maximum LTV||Green Rewards and Green Building: Up to 80%
Green Preservation Plus: Up to 85%
|Rate Structure||Fixed and adjustable rate options available for Green Rewards and Green Building Certification; Fixed rate only for Green Preservation Plus.|
|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 20% or more reduction to 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 for Green Rewards will be escrowed at 100% until completion; for Green Preservation Plus at 125%.|
|Recourse||Non-recourse with standard exceptions for fraud, misrepresentation and other non-recourse carve-outs (i.e., illegal transfers).|
|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. A High Performance Building report (HPB) is required for Green Rewards and Green Preservation Plus. Fannie Mae reimburses 100% of the cost for the HPB subject to the loan closing at Green Rewards.|
|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||Standard 10 day rate lock period. Early/extended rate lock options available.|
|Application Deposit||$12,500. Covers all estimated underwriting costs (including processing fee).|
|Processing Fee||$3,000 non-refundable.|
|Origination Fee||Minimum 1%. Par pricing available.|
|Legal/Closing Fee||Arbor’s Counsel Fee to be determined at application.|
|Good Faith Deposit||2% of loan amount, due at rate lock, but refundable.|