Investment

Special Report Fall 2025: Turning a Corner

After proving its resilience, the multifamily real estate sector is positioned to thrive in the next growth cycle. While uncertainties persist and risks remain, new federal policies and long-awaited interest rate relief have brought optimistic investors back to the table with a new sense of urgency.

Finance

Financing Workforce Housing: A Stable and Value-Add Investment

Fannie Mae and Freddie Mac, which operate under the Federal Housing Finance Agency’s Duty to Serve Plan, have made financing workforce housing a central component of creating more equitable and sustainable access to quality rental housing. With a wide range of programs and incentives now available, investors have been increasingly securing stable and valuable opportunities, which can also improve the lives of cost-burdened middle-income professionals.

Articles

Arbor Pitches Its Support to Charity Golf Outing on Long Island

Arbor takes pride in empowering employees to reach their full potential, helping to strengthen our clients and communities. With that aim, our company supported the Fifth Annual Smile Farms Invitational golf outing in Jericho, NY, on September 16, benefiting the Long Island-based non-profit dedicated to advancing opportunities for people with disabilities.

Articles

Government Shutdown: What Multifamily Borrowers Need to Know

Unless an 11th-hour agreement is reached, a political impasse over budget legislation for the next fiscal year will trigger a federal government shutdown. Starting October 1, 2025, many non-essential federal government operations could potentially be limited or suspended, but most multifamily financing activities will not be disrupted.

Articles

Arbor Private Construction (APC) Meets Soaring Demand for Financing

Arbor Private Construction (APC), Arbor’s newest non-agency financing product, has seen robust demand during the first half of 2025, with high-profile transactions closed in strong markets like Surfside, FL, and Philadelphia, PA. Designed for shovel-ready projects, APC is a dynamic program expanding premium rental housing options in primary markets.

General: 800.ARBOR.10

FHA® 223(f):

REFINANCE, ACQUISITION, OR MODERATE RENOVATION

Arbor provides FHA-insured, long-term, fixed-rate financing for refinance, acquisition or moderate renovation of multifamily projects nationwide. Arbor uses the single-stage Multifamily Accelerated Processing (MAP) Program to expedite underwriting and approval.

Loan Term & Amortization Up to 35 years, not to exceed 75% of the remaining economic life (Fully Amortizing).
Minimum DSCR 1.176x for Market Rate properties, or LIHTC restricted whose rents are < 10% below market; 1.15x for LIHTC restricted properties with rents at least 10% below market; 1.11x for properties having at least 90% rental assistance contracts.
Maximum Loan to Value/Acquisition Cost 85% for Market Rate properties, or LIHTC restricted whose rents are < 10% below market; 87% for LIHTC restricted properties with rents at least 10% below market; 90% for projects with 90% or greater Rental Assistance.
Fixed Rate Yes
Eligible Properties Existing Multifamily projects at least three years old. Detached structures and row houses eligible. Market rate, low-to-moderate income and subsidized multifamily properties.
Eligible Borrower Single Asset Entity (for profit or non-profit).
Occupancy Requirement Average 85% occupancy for the 6 months prior to HUD application submission. Maximum economic underwriting occupancy of:

  • 93% for market rate properties (i.e. at least 20% market rate units, or LIHTC whose rents are < 10% below market rents).
  • 95% for LIHTC restrictions on at least 80% of units at rents at least 10% below market.
  • 97% for properties having at least 90% rental assistance, or 90% LIHTC set aside with rents at least 10% below market.
Cash Out Cash out allowed when 80% of value exceeds existing debt plus transaction costs, but only 50% of the net cash will be released at closing. The remaining 50% will be held in escrow until all required repairs are completed. A potential waiver is available to reduce holdback to 25%.
Tax & Insurance Escrows Monthly deposits required.
Recourse Non-recourse, subject to HUD Regulatory Agreement.
Commercial Space Maximum 25% of net rentable area and maximum 20% of effective gross income; minimum 10% underwritten vacancy.
Required Reports Borrower is responsible for all required report costs, included but not limited to: Appraisal, Market Study, Environmental Phase I, Phase II (if applicable), and PCNA. Pre-1978 properties may require lead-based paint and asbestos- containing material testing. Projects 30 years of age or older may require additional testing. Costs can be reimbursed from loan proceeds at closing.
Prepayment Typically 10% year 1, declining 1% per year. Other pre-payment options available subject to market conditions.
Assumable Subject to Arbor and HUD approval and payment of assumption fee.
Good Faith Deposit Negotiable based on project type and loan size.
Expense Escrow Yes – sufficient to cover Arbor’s expenses and third-party report costs.
Origination Fee Negotiable
HUD Application Fee Non-refundable fee of $3 per $1,000 (0.3%) of the mortgage amount due to HUD upon application submission.
HUD Inspection Fee $30 per unit when repairs are less than $3,000 per unit. If above $3,000 per unit, 1% of the total cost of the repairs.
Legal/Closing Fee Borrower pays Arbor’s Counsel Fee and miscellaneous closing costs.
Rehabilitation Qualifications Repairs cannot exceed $15,000 per unit (adjusted for local high-cost factor). Repairs/replacements are also limited to one major building component.
Davis Bacon Not applicable to this program.
HUD Mortgage Insurance Premium HUD sets the cost of the FHA Insurance. The initial MIP is 1% of the loan amount due to HUD at closing. Annual MIP rates:

  • Market Rate Properties: 0.60%
  • Affordable Properties: 0.35%
  • Broadly Affordable or Energy Efficient Properties: 0.25%
  • “Green” energy efficiency achievement): 0.25%

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