Articles

Arbor’s New True Colors Show Our Creativity and Green Roots

For more than 30 years, Arbor has been committed to growing financial partnerships that meaningfully impact communities nationwide. From planting trees to celebrate closed loans to supporting environmental organizations, our work has always been a win-win for our financial partners and the planet. But just as leaves change with each passing season, Arbor’s branding is evolving to seize the moment by embracing our roots with True Colors.

Articles

Five Advantages of Adding Fannie Mae Green Rewards to a Multifamily Loan

Since the Fannie Mae Green Rewards program launched in 2015, green financing has become a mainstay of commercial real estate. In addition to reducing the environmental impact of multifamily housing, the Green Rewards program creates a triple bottom line with increased cash flows, higher quality housing, and lower energy and water usage. With a high upside and little downside, the program is well worth multifamily borrowers’ consideration.

Articles

CRE Solutions for a Greener Planet Build Momentum

From California wildfires to rising sea levels to Florida hurricanes, the direct and indirect risks of climate change have grown in recent years, making a more substantial impact on the multifamily sector. As the need for sustainability becomes increasingly apparent, lawmakers and lenders have advanced programs and policies that show “going green” is a win-win.

Current Reports

Affordable Housing Trends Report Spring 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. Arbor’s Affordable Housing Trends Report Spring 2024, developed in partnership with Chandan Economics, examines the major policies and programs shaping the marketplace at a time when overdue federal funding expansions have increased agency budgets.

Articles

What Is Driving Lifestyle Renter Demand?

Lifestyle renters — those who have the means to own but prefer to rent or are willing to pay more for apartments with amenities — have become a key driver of rental demand in single-family rental homes, build-to-rent communities, and other types of high-quality multifamily housing. With this small yet influential demographic growing, our research teams examine and explain the factors driving lifestyle renter demand.

Articles

Build-to-Rent Well-Positioned to Fill Housing Market Gap

With nearly one-fifth of multifamily properties now over 65 years old, it’s time to consider solutions for rejuvenating the rental housing stock in the U.S. While building rehabs are a tried-and-true solution, build-to-rent (BTR) is an alternative that is well-positioned to expand as Americans increasingly favor renting over homeownership.

General: 800.ARBOR.10

Home | Fannie Mae | Hybrid Adjustable Rate Mortgage (ARM)
Download PDF
|email

Fannie Mae® Hybrid Adjustable Rate Mortgage (ARM)

Arbor’s Hybrid ARM product offers a 30-year mortgage loan, comprised of an initial term where interest accrues at a
fixed-rate, after which it automatically converts to accrue interest at an adjustable-rate for the remaining term.

Loan Amount Up to $6 million nationwide
Loan Term 7-year fixed rate term, followed by a 23-year adjustable rate term; or 10-year fixed rate term, followed by a 20-year adjustable rate term
Amortization 30 years
Maximum LTV Up to 80%
Minimum DSCR 1.25x Actual Amortizing DSCR. The maximum loan amount must be determined by using a minimum 1.00x sufficient to cover a debt service constant that equals the sum of (i) the interest rate during the fixed rate term, plus (ii) 2.50%
Rate Lock 30- to 180-day commitments; Borrowers may lock a rate with the Streamlined Rate Lock option
Interest Rate Adjustments Starting in the adjustable-rate period, adjusts based on changes to the underlying index and is equal to the Index plus the Margin
Index During Adjustable-Rate Term 30-day Average SOFR
Margin During Adjustable-Rate Term 1.15%, plus the Guaranty Fee and the Servicing Fee in effect at Rate Lock
Prepayment Availability Flexible prepayment options available during the fixed-rate term, including yield maintenance and declining prepayment premium; no prepayment fees during the adjustable-rate period
Maximum Interest Rate During The Adjustable-Rate Term Starting with the conversion from the fixed interest rate to the adjustable interest rate and thereafter, maximum semi-annual interest rate adjustment of 1% up or down

Maximum lifetime interest rate to Borrower capped at 5% over the initial fixed rate
Lifetime Interest Rate Floor The interest rate will never be less than the Margin
Supplemental Financing Not available
Accrual 30/360 or Actual/360
Recourse Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy
Escrows Replacement reserve, tax, and insurance escrows are typically required
Third-Party Reports If underwriting to Small Mortgage Loans, then streamlined inspection and Environmental Screening using the ASTM E-1528-14 protocol, otherwise, standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment
Application Deposit $10,000; Covers estimated processing and legal fees
Assumption Loans are typically assumable, subject to review and approval of the new Borrower’s financial capacity and experience

V020722

ARBOR.COM | 800.ARBOR.10
Download PDF
|email

Request a Quote

Fill out a simple form and an expert loan originator will contact you shortly.