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.

Articles

The Probability Renters Will Keep Renting Hits Record High

The average renter thinks there is a three-in-five chance they will still be in the rental market in 2027, according to the New York Federal Reserve’s recently released 2024 SCE Housing Survey. Compared to last year, the probability of the average renter not becoming a homeowner in the next three years was up 4.3 percentage points, reaching its highest mark since the study began in 2015.

Current Reports

Small Multifamily Investment Trends Report Q2 2024

Small multifamily’s performance continues to conform to pre-pandemic norms typically seen before the historic boom years of 2021 and 2022. In the first quarter of 2024, cap rates and asset prices both improved quarter-over-quarter, Arbor’s Small Multifamily Investment Trends Report Q2 2024, developed in partnership with Chandan Economics, has found. The subsector’s fundamental strength will support steady growth amid tight credit conditions until interest rate relief invites increased investment activity.

Analysis

U.S. Multifamily Market Snapshot — May 2024

Key fundamentals of the U.S. multifamily remained strong to start 2024. Despite fears of oversupply, rent growth remained stable and vacancy rates remained near historical lows.

Articles

Arbor Marketing Campaign Wins Two Awards at Industry Gala

For more than 30 years, Arbor has been committed to building strong bonds with clients that lead to mutual success. This philosophy is at the heart of a unique Arbor marketing campaign, The Art of Growing Financial Partnerships, which received two awards at the 30th Annual Financial Communications Society (FCS) Portfolio Awards Gala in New York City on May 2. The campaign, which was featured in two private jet terminals, used original stained-glass pieces to build brand awareness among high-net-worth travelers.

Articles

Top SFR Annual Rent Growth Markets

Even as rents retreated elsewhere, single-family rentals (SFR) have continued to outperform all other housing sub-types, exceeding the all-property type national average in 17 consecutive months through February 2024, according to Zillow’s Observed Rent Index (ZORI). Annual SFR rent growth has seen substantial gains in many metropolitan areas since national rent growth peaked in March 2022. In this deep dive, the Chandan Economics and Arbor Realty Trust research teams pinpoint the metropolitan areas where SFR rents are rising the fastest.

General: 800.ARBOR.10

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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