Articles

How Multifamily Property Renovations Add Value and Marketability

The ideal time to renovate is when the rental market is strong. With high occupancy rates, borrowers are more likely to quickly realize returns on their multifamily property renovations through higher rents. However, renovating during a market downturn, when rents are often cheaper, inventory is higher, and materials are more affordable, is also a sound strategy.

Current Reports

Single-Family Rental Investment Trends Report Q2 2024

Quarter after quarter, the single-family rental (SFR) sector reaches new heights. From new construction to cap rates, Arbor’s Single-Family Rental Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, details how the sector’s healthy fundamentals create profound optimism in its long-term prospects.

Articles

Arbor Sponsors Smile Farms Golf Outing Supporting Local Employment Opportunities

Arbor, which takes pride in helping employees reach their full potential, was honored to sponsor and participate in Smile Farms’ 10th Anniversary Golf Outing on May 20 at the Plandome Country Club on Long Island, NY, benefiting the Long Island-based organization dedicated to advancing opportunities for people with disabilities.

Articles

New York State’s 2025 Budget Advances Affordable Housing Goals

In April, New York State Governor Kathy Hochul announced a landmark budget agreement heralded as a giant step for affordable housing. New York’s FY 2025 Enacted Budget includes several key policy changes that could create thousands of affordable housing units across the state.

Articles

SFR East 2024: How Economics and Demographics Shape the Rental Market

IMN’s Single Family Rental Forum (East), the cornerstone gathering of the SFR industry, concluded on May 22, 2024, in Miami, FL. Over three days, 1,800 attendees listened to more than 280 speakers discuss all angles of the SFR industry. On the first day of the conference, Arbor’s Tres Seippel, Director, Construction Management, participated in a wide-ranging panel discussion examining economic and demographic forces influencing SFR and build-to-rent (BTR), which also featured Rick Dalton, President of the Dalton Group, Domonic Purviance of the Federal Reserve Bank of Atlanta, Wade McGuinn, CEO of McGuinn Hybrid Homes, and Heather Williams, VP at Willow Bridge Property Company.

Articles

Affordable Housing Market Snapshot — May 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. With more funding on the way, policymakers and private market advocates are pressing ahead with plans to add units to an increasingly tight housing market.

General: 800.ARBOR.10

FANNIE MAE DUS®

Multifamily Affordable Housing (MAH)

Arbor’s DUS MAH product provides flexible terms for acquisition or refinance of multifamily projects nationwide that qualify as affordable housing. Eligible properties are those that participate in the Low Income Housing Tax Credit (LIHTC) program, are encumbered by a Housing Assistance Payment (HAP) contract or participate in the Section 8 program (either through vouchers or direct payments). Other, special uses can be considered for MAH status.

Loan Amount $750,000 minimum
Loan Term Up to 30 years
Amortization Up to 30 years
Minimum DSC 1.20x (fixed)
Maximum LTV Up to 80%
Fixed Rate Yes
Adjustable Rate Available; Priced off the one month or three month SOFR. Convertible and non-convertible options available
Eligible Properties Multifamily, minimum five units
Eligible Borrower Single asset entity
Occupancy Requirement 85% physical occupancy; 70% economic occupancy
Tax & Insurance Escrows Monthly deposits required
Replacement Reserves Underwritten at a minimum $250 per unit per annum
Recourse Non-recourse with standard exceptions for fraud and misrepresentation can be waived for 100% restricted properties.
Commercial Space Maximum 35% of net rentable area and maximum 20% of effective gross income
Required Reports Appraisal, Property Condition Assessment, Phase I Environmental
Prepayment Yield maintenance and other declining prepayment options are available
Assumable Subject to approval and 1% fee
Supplemental Loans Eligible for secondary financing after 12 months
Pricing Tiered Pricing Matrix; more favorable terms available for higher DSC and lower LTV
Rate Lock Standard 30- to 180-day rate lock period; early/extended rate lock options available
Application Deposit $23,000; covers estimated processing and legal fees; an additional $10,000 deposit required for Green Rewards
Origination Fee Minimum 1%; par pricing available
Good Faith Deposit 2% of loan amount

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