Current Reports

Single-Family Rental Investment Trends Report Q1 2024

On the heels of a strong 2023, the single-family rental (SFR) sector is positioned to expand even more in 2024. Build-to-rent (BTR) starts ticked up in the third quarter to reach 7.8%, another record high. With occupancy rates stable and lease renewal rent growth above historical averages, SFR has healthy fundamentals that will continue to support growth amid headwinds, Arbor’s Single-Family Rental Investment Trends Report Q1 2024, developed in partnership with Chandan Economics, shows.

Analysis

U.S. Multifamily Market Snapshot — Q4 2023

The U.S. multifamily market continued to show signs of slowing at the end of 2023, although demand remained robust, with high home prices leading younger generations of higher-income households to choose renting over homeownership.

Uncategorized

Arbor Recognized as Top Lender by Fannie Mae, Freddie Mac, and FHA in 2023

Arbor’s platform of diverse multifamily financing solutions and our strong industry relationships drive us to the top of the multifamily lender rankings year after year. Through decades-long partnerships with Fannie Mae, Freddie Mac, and FHA, our best-in-class team delivered results for our borrowers in 2023, propelling Arbor to the top of the partner rankings.

Current Reports

Small Multifamily Investment Trends Report Q1 2024

Small multifamily starts the year from a position of strength with normalizing expense ratios and healthy occupancy rates. After demonstrating resiliency amid headwinds, this subsector is ready to capitalize on any positive momentum in the financial markets. Arbor’s Small Multifamily Investment Trends Report Q1 2024, developed in partnership with Chandan Economics, examines and explains the key developments every investor needs to know.

General: 800.ARBOR.10

FHA®223(f)

Refinance of HUD Section 202 Properties

Arbor provides FHA-insured, long-term, fixed-rate financing for refinance or moderate renovation of existing Section 202 projects nationwide. Arbor uses the single-stage Multifamily Accelerated Processing (MAP) program to expedite underwriting and approval.

Loan Term & Amortization Up to 35 years (fully amortizing)
Minimum DSCR 1.11x
Maximum LTV/Purchase Price Up to 90%
Fixed Rate Yes
Eligible Properties Existing Section 202 projects
Eligible Borrower Single asset entity (for profit or nonprofit)
Developer Fee Up to 15% of the acceptable development cost
Tax & Insurance Escrows Monthly deposits required
Recourse Nonrecourse, subject to HUD Regulatory Agreement
Commercial Space Maximum 25% of net rentable area and maximum 20% of effective gross income; 10% vacancy applied
Required Reports Appraisal, Project Capital Needs Assessment (PCNA) & Phase I Environmental
Prepayment Negotiable; generally two-year lockout with a 10% to 1% declining prepayment penalty; other prepayment options available
Assumable Subject to Arbor and HUD approval and payment of assumption fee
Good Faith Deposit 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 Nonrefundable 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 (MIP) HUD sets the cost of the FHA insurance; initial MIP is due to HUD at closing, and the MIP is escrowed monthly thereafter
Prepayment of Section 202 Loan HUD’s Housing Notice 2013-17 provides guidance for the prepayment approval process
HUD Mortgage Insurance Premium HUD sets the cost of the FHA insurance; 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%

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