FANNIE MAE DUS®
Unfunded Forward Commitment
Arbor offers an unfunded forward commitment to issue an MBS upon completion of construction and conversion to a
permanent mortgage loan for multifamily affordable properties. The MBS as Collateral for Tax-exempt Bonds (M.TEB)
execution is an available option for 4% LIHTC transactions.
Benefits |
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Eligibility |
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Interest Rate |
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Good Faith Deposit | 1% of the loan amount, due at issuance of the Forward Commitment, refundable upon conversion. |
Forward Rate Lock | 24 or 30 month commitments. One delegated six-month extension available. |
Forward Standby Fee |
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Delivery Tolerance | +5% and -10% is available. |
Conversion to Permanent Loan | The permanent loan will close upon project completion with certificates of occupancy for all units and 90% occupancy for 90 consecutive days. The permanent loan must meet Fannie Mae’s underwriting requirements. |
Additional Considerations |
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Term | Up to 30 years. |
Amortization | Up to 35 years. |
Maximum LTV |
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Minimum DSCR |
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