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Welcome to Chatter! We’re happy to be your source for multifamily news, research and insight. Bookmark us and be sure to sign up for our weekly newsletter to stay on top of all things financing and investment for the multifamily industry. We also invite you to follow us on Twitter. What is Chatter? So what Read the full article…

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®

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, but flexible depending upon sponsorship
Loan Term 5, 7 or 10 years
Amortization Up to 30 years
Minimum DSCR 1.00 at Maximum Interest Rate
Maximum LTV Up to 75%
Rate Structure Priced off the one-month SOFR or three-month SOFR. Convertible and nonconvertible options available
Eligible Properties Existing, stabilized Conventional; Multifamily Affordable Housing; Seniors Housing; Student Housing; and Manufactured Housing Communities
Eligible Borrower Single Asset Entity
Occupancy Requirement 85% physical occupancy, 70% economic occupancy
Interest Rate Cap Structured ARMS have no built-in periodic or lifetime capts. Instead, the Borrower must purchase an interest rate cap from an approved interest rate cap provider.
The term of the initial interest rate cap need not be equal to the term of the Mortgage Loan, but must be for at least 5 years.
If the Mortgage Loan term is longer than the interest rate cap term, the Borrower must escrow monthly for the purchase of the next interest rate cap.
Tax & Insurance Escrows Monthly deposits required
Replacement Reserves Underwritten at a minimum $250 per unit per annum
Recourse Nonrecourse 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 (nonrecourse 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 $20,500; covers estimated processing and legal fees
Origination Fee Minimum 1%, par pricing available
Good Faith Deposit 2% of loan amount

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