FANNIE MAE DUS®
Near-Stabilization Execution
Arbor provides Fannie Mae’s Multifamily Mortgage Business permanent mortgage loan financing for newly constructed or recently renovated conventional and affordable multifamily apartment communities expected to achieve stabilized occupancy within 120 days.
| Loan Amount | $10M smaller loan amounts may be considered |
| Loan Term | 5-, 7-, 10- and 12-year term options available |
| Amortization | 5 – 30 years |
| Minimum DSCR | Targeted underwritten DSCR of 1.25x (Up to 1.15 for MAH loans). Underwritten DSCR is defined as DSCR as deemed achievable within 4 months after rate lock by the Lender and by Fannie Mae in its sole discretion |
| Maximum LTV | 75% of “as stabilized” loan-to-value |
| Rate Structure | Fixed- and variable-rate interest options are available |
| Eligible Properties | Partially leased, newly constructed, or recently renovated conventional and affordable housing properties, which are 100% complete and expected to obtain stabilized occupancy within 120 days of rate lock |
| Eligible Borrower | Strong borrower with demonstrated lease-up track record |
| Occupancy Requirement | 75% physical occupancy |
| Tax & Insurance Escrows | Monthly deposits required. May be waived if certain criteria are met. |
| Replacement Reserves | Underwritten at a minimum $250 per unit per annum |
| Recourse | Non-recourse execution 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 |
| Required Reports | Appraisal, Property Condition Assessment, Phase I Environmental |
| Prepayment | Flexible prepayment options available, including yield maintenance and declining prepayment premium |
| 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 | 30- to 120-day commitments; Borrowers may lock a rate with the Streamlined Rate Lock option |
| Accrual | 30/360 and Actual/360 |
| Application Deposit | $20,500. Covers estimated processing and legal fees |
| Origination Fee | Minimum 1.00% |
| Good Faith Deposit | 2% of loan amount, due at rate lock, refundable post-closing |
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