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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 minimum.
Loan Term 5, 7, 10 and 12 year term options available.
Amortization Up to 30 years.
Minimum DSCR Targeted underwritten DSCR of 1.25x. 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 with standard exceptions for “bad acts” such as fraud and misrepresentation.
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 Loans may be voluntarily prepaid upon payment of yield maintenance for fixed rate loans and graduated prepayment for variable rate loans.
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. An early rate lock feature is available; allowing the borrower to lock the interest rate after the lender completes preliminary underwriting.
Application Deposit $12,500. Covers all estimated underwriting costs (including processing fee).
Processing Fee $3,000 non-refundable.
Origination Fee Par Pricing available.
Legal Closing Fee Arbor’s Counsel Fee to be determined at application.
Good Faith Deposit 2% of loan amount, due at rate lock, refundable post-closing.


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