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 |
V020722