Articles

Top 10 Markets for Undergraduate Apartment Renters

For undergraduate students nationwide, apartments fill the gap in campus housing. Off-campus housing offers a better value proposition in many markets, giving students more space at a competitive price. In other markets, students pursue apartments due to insufficient dormitory space. As colleges and universities acquire and build to keep pace with enrollment, the supply-demand imbalance has created new opportunities for multifamily real estate investment.

Investment

Not Waiting for Normal

Even with the market in flux, opportunities continue emerging for well-positioned investors. Historically, some of the best multifamily deals were closed in down cycles or during the upswing to normalcy. Arbor’s Special Report Fall 2024 details why the current economic climate is ripe for investment.

Current Reports

Single-Family Rental Investment Trends Report Q3 2024

The single-family rental (SFR) sector’s performance surged again last quarter, demonstrating its ability to thrive in all economic cycles. SFR construction continued its record-breaking ascent as CMBS activity blossomed. Arbor’s Single-Family Rental Investment Trends Report Q3 2024, developed in partnership with Chandan Economics, examines the sector’s fundamentals as would-be homeowners weigh the rent-vs-buy calculation.

Articles

Could Build-to-Rent Be a Solution to Housing’s ‘Missing Middle’ Problem?

Did you know that at the same time many renters navigate a housing market with limited affordable options, new apartment development continues to be held back by World War II-era zoning restrictions? In many localities, regulations introduced in the mid-1940s have choked the multifamily pipeline for decades, creating a “missing middle” that leaves low-income renters in a lurch.

Articles

Build-to-Rent Construction Continues Its Record-Breaking Ascent

Increasingly, single-family rental (SFR) operators have been relying on build-to-rent (BTR) development to bridge the housing gap, accelerating the momentum of SFR construction through 2024’s halfway point. Both total SFR/BTR housing starts and BTR’s share of all single-family housing starts reached new record highs in the second quarter, setting the stage for another banner year.

General: 800.ARBOR.10

Home | Fannie Mae | M.TEB
Download PDF
|email

FANNIE MAE DUS®

MBS as Tax-Exempt Bond Collateral (M.TEB) – Fixed Rate

Arbor’s MBS as Tax-Exempt Bond Collateral (M.TEB) – Fixed Rate issues MBS that can be used as collateral for either
(i) existing fixed-rate bond refundings, or (ii) new fixed-rate bond issues in conjunction with 4% Low-Income Housing Tax
Credits (LIHTC).

Benefits
  • Faster closings with our unique delegated model.
  • Declining prepayment options or yield maintenance.
  • Interest-only is available.
  • Guaranteed direct pass-through of principal and interest is more attractive to bond buyers.
Eligibility
  • Multifamily Affordable Housing properties.
  • Loans underwritten to Fannie Mae Guide Requirements for tax-exempt bonds.
  • Refundings or new issues with in-place rehab.
  • Immediate delivery or standby forward commitment.
Loan Term 10-30 years.
Amortization Up to 35 years.
Maximum LTV
  • 90% for 4% LIHTC properties with at least 90% of the units meeting affordability requirements.
  • 85% for 4% LIHTC properties with fewer than 90% of the units meeting affordability requirements.
  • 80% for refundings.
Minimum DSCR
  • 1.15x for 4% LIHTC properties with at least 90% of the units meeting affordability requirements
  • 1.20x for 4% LIHTC properties with fewer than 90% of the units meeting affordability requirements for refundings.
Issuer and Trustee Fees Loan sizing must include underwriting of the Issuer and Trustee Fees; however, Issuer and Trustee Fees will be paid directly by borrower and are not enhanced or passed through by Fannie Mae.
Mandatory or Optional Redemption Feature No separate mandatory or optional redemptions outside of the MBS structure.
Prepayment Availability Flexible prepayment options available, including yield maintenance and declining prepayment premium.
Bond Payments Principal and interest payments will be based on a monthly schedule in accordance with the terms of the MBS and will flow through the bond trustee for payment to the bondholder. Payments of principal and interest under the MBS are paid in arrears on the 25th of the month based on the prior month’s accrual; payment to the bondholder occurs on the following business day.
Tax-Exempt to Taxable Conversion Feature If there is a single bondholder, and subject to Issuer consent, the bondholder may pursue an option to redeem tax-exempt bonds and hold the MBS directly.
For 4% LIHTC transactions, this redemption cannot occur prior to the Placed-in-
Service date.
Loan Documents Documented on Fannie Mae loan documents; Issuer must utilize the Fannie Mae form Indenture.
Third-Party Subordinate Financing Hard subordinate debt (which requires scheduled repayment of principal) is permitted only if provided by a public, quasi-public, or not-for-profit lender and combined debt service coverage cannot fall below 1.05x. Soft subordinate debt is permitted subject to requirements which include capping payments at 75% of available property cash flow after payment of senior liens and property operating expenses.
Recourse Non-recourse execution is 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 Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.

V112718

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.