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GENERAL: 800.ARBOR.10

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; on a cooperative complex or student-based property, you are eligible for a Supplemental Loan under the Fannie Mae DUS program.

Loan Amount $500,000 minimum.
Loan Term Up to 30 years. Must be coterminous with original mortgage.
Requirements
  • The Fannie Mae first mortgage must have been an Arbor transaction
  • At least 12 months must elapse between the closing of a DUS Supplemental Loan and the closing of the latest placed pre-existing mortgage
  • The term of the supplemental mortgage must be at least 5 years
Acceptable Transactions
  • Fixed-rate or ARM regardless of the rate structure on the pre-existing loan
  • Supplemental Loans are allowed on affordable deals (MAH), but restricted to DSCR of 1.25 and LTV of 80% for adjustable rate and DSCR of 1.30 and LTV of 75% for fixed rate
  • Small loans are eligible for Supplemental Loans
Workings
  • Funding of replacement reserves will be for the first loan only, unless additional funding is required
  • A new title insurance policy is required
  • No new survey is required, provided the title meets certain requirements
  • A third-party appraisal report is required
Limitations
  • One DUS Supplemental Loan is permitted during the term of the first mortgage lien; however, a second DUS Supplemental Loan can be used in connection with a sale and assumption to an unrelated new borrower or in connection with DUS Plus or Community Investments Mezz
  • The closing and funding of the second Supplemental Loan MUST occur simultaneously with the sale and assumption of the existing debt
  • Less than 7 years left on term of first, the Supplemental Loan sizing is subject to additional exit risk analysis
Minimum DSCR 1.30 on a coterminous loan.
Maximum LTV 70% on a non-coterminous loan.
Prepayment Yield maintenance or defeasance.
Assumable Subject to approval and 1% fee (non-recourse loans only).
Application Fees $10,000 for Small Loans
$12,500 for DUS

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