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Welcome to Chatter! We’re happy to be your source for multifamily news, research and insight. Bookmark us and be sure to sign up for our weekly newsletter to stay on top of all things financing and investment for the multifamily industry. We also invite you to follow us on Twitter. What is Chatter? So what Read the full article…

Research

How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

Around the Web

Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…

GENERAL: 800.ARBOR.10

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
  • Lower interest rate
  • Fannie Mae pays 100% of energy and water audit report; loan must close as Green Rewards
  • Up to 5% more in loan proceeds
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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