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GENERAL: 800.ARBOR.10

FANNIE MAE DUS®

Structured Adjustable Rate Mortgage (ARM)

Arbor’s DUS Structured ARM product offers increased proceeds over the fixed-rate product with a lower initial interest rate. With an easy-to-use conversion feature, Arbor’s DUS ARM product gives owners an attractive option in a higher interest rate.

Loan Amount $25,000,000 minimum.
Loan Term 5, 7 or 10 years.
Amortization Up to 30 years.
Minimum DSCR 1.00 at Maximum Interest Rate.
Maximum LTV 75%
Rate Structure Priced off the one-month LIBOR or three-month LIBOR. Convertible and nonconvertible 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 carve-outs.
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 Lockout for one year followed by a 1% prepayment premium or declining prepayment premium option.
Assumable Subject to approval and 1% fee (non-recourse loans only).
Subordinate Financing Not allowed without written approval.
Supplemental Loans Not permitted prior to conversion to fixed rate.
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.
Rate Lock 30 day commitments are available.
Application Deposit $12,500. Covers all estimated underwriting costs (including processing fee).
Processing Fee $3,000 non-refundable.
Origination Fee Minimum 1%. Par pricing available.
Legal/Closing Fee Arbor’s Counsel Fee to be determined at application.
Good Faith Deposit 2% of loan amount.

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