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Research

How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

Around the Web

Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…

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 $10,000,000, smaller loan amounts may be considered
Loan Term 5, 7, 10 and 12 year term options available.
Amortization 5 to 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 180-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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