Single-Family Rental Investment Trends Report Q1 2023

Investor Purchases, New Starts, and Tenant Performance Show Strength as Cap Rates Rise Arbor’s Single-Family Rental Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, explores a growing multifamily sector with a unique ability to rise above macroeconomic headwinds.   Last year, investors purchased more single-family rental (SFR) units than in 2021 as Read the full article…

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Affordable Housing Market Snapshot — Spring 2023

Arbor’s latest Affordable Housing Trends Report, developed in partnership with Chandan Economics, offers a wide-ranging lens into the complex, though critically important, affordable and workforce housing sectors.

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Seven Facts about FHA Multifamily Loans for Affordable Housing

The Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD), is one of the largest mortgage insurers in the world. The agency insures mortgages on affordable housing, multifamily properties, single-family homes, multifamily properties, and health care facilities. Since 1934, FHA has financed over 50,000 multifamily mortgages nationwide. Whether you’re interested in acquiring, refinancing, or rehabilitating an affordable housing property, FHA multifamily loans are a financing route you need to know about.

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Video Analysis: Arbor’s Affordable Housing Trends Report Spring 2023

In this video, Sam Chandan, professor of finance and Director of the Chen Institute for Global Real Estate Finance at the NYU Stern School of Business, discusses the key findings of Arbor’s Affordable Housing Trends Report Spring 2023, developed in partnership with Chandan Economics. He adds context to the Federal, state, and local housing policy trends impacting the future of the affordable sector, which, he notes, continues to have the highest development prospects of any residential subtype.

Current Reports

Small Multifamily Investment Trends Report Q1 2023

The small multifamily subsector, strengthened by sound structural fundamentals, is well-positioned to face distress due to interest-rate pressure. Even though pricing has slid lower and cap rates have risen, it should remain resilient in the coming quarters. A deep dive into a uniquely positioned subsector, Arbor’s Small Multifamily Investment Trends Report Q1 2023, developed in partnership with Chandan Economics, analyzes the competing headwinds and tailwinds influencing investment performance.

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Arbor Wins Prestigious Fannie Mae Excellence in Technology Award

Fannie Mae Multifamily recently honored Arbor with its prestigious 2022 DUS Lender Award for Excellence in Technology, citing it as “a constant source of innovative ideas” and “a stalwart partner” in driving “Fannie Mae’s digital transformation for the DUS community.”

Analysis

U.S. Multifamily Market Snapshot — Q1 2023

The U.S. multifamily market continued to show signs of slowing during the first quarter of 2023. Rent growth was down from the skyrocketing pace seen in 2021 and 2022, although demand remained strong and vacancy held near historic lows.

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Home | Fannie Mae | Fannie Mae Supplemental Loan
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FANNIE MAE DUS®

Supplemental

Whether your Arbor Fannie Mae loan was executed on a market rate or affordable property, under the Forward Commitment or Small Loans program, or on a cooperative complex or student-based property, you are eligible for a supplemental loan under the Fannie Mae DUS program.

Loan Amount $1,000,000 minimum
Loan Term 5 to 30 years, coterminous or non-coterminous
Amortization Up to 30 years
Interest Type Fixed- or variable-rate options available
Requirements
  • Arbor must be the servicer of the existing Fannie Mae fixed-rate or adjustable-rate mortgage loan
  • Supplemental loans are available 12 months after the closing of the senior Fannie Mae mortgage loan
Eligible Asset Classes
  • Stabilized Conventional
  • Multifamily Affordable Housing
  • Student Housing
  • Seniors Housing
  • Manufactured Housing Communities
Limitations
  • One Supplemental loan is permitted during the term of the first mortgage lien; however, an additional supplemental loan may be placed if the preexisting debt is assumed through an arms-length acquisition
  • Preexisting Fannie Mae debt may not have less than five years until maturity
Underwriting
  • Appraisal, Property Condition Assessment, and Phase I Environmental update are required
  • Funding of replacement reserves will match the preexisting level unless an increase is required after review of the Property Condition Assessment
  • A new title insurance policy is required
  • No new survey is required provided the title meets legal requirements
Minimum DSCR As low as 1.30x, depending upon asset class and use of proceeds
Maximum LTV As high as 75%, depending upon asset class and use of proceeds
Prepayment Yield maintenance or defeasance
Accrual 30/360 and actual/360
Rate Lock 30- to 180- day commitments; borrowers may lock a rate with the Streamlined Rate Lock option
Recourse Nonrecourse execution with standard carve-outs for “bad acts” such as fraud or bankruptcy
Assumable Subject to approval and 1% fee (nonrecourse loans only)
Application Fee Deposit $20,500; covers estimated processing and legal fees

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