Uncategorized

Commercial Bridge Loans: Fast, Flexible Financing for Multifamily Investors

With constantly changing market conditions, investors sometimes need access to capital with flexible terms to improve or secure an asset. Commercial bridge loans are a popular financing tool that provides borrowers with short-term capital for renovations and purchases. They are often the perfect first step in the door to the beginning of a long-term financial partnership.

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(a)(7):

REFINANCE OF EXISTING HUD-INSURED LOAN

Arbor provides streamlined refinancing of existing FHA-insured loans nationwide. Refinance costs, such as prepayment, are included.

Loan Term & Amortization Remaining term of the existing HUD loan plus up to 12 years (subject to HUD approval); term cannot exceed the original term of the existing loan; loan is fully self-amortizing
Loan Amount No cash-out; new loan amount is the lowest of:

  1. Original principal balance of existing loan
  2. 100% of the costs to refinance (current principal balance plus transaction costs, repairs and deposits to replacement reserves)
  3. Minimum debt service coverage of 1.11 (1.05 for Section 8 contracts on at least 90% of units)
Interest Rate Fixed rate subject to market conditions at time of rate lock
Eligible Properties Multifamily projects or healthcare facilities currently insured under Sections 220, 221(d), 223(f), 232, 241 and 242
Eligible Borrower Single asset entity (for profit or nonprofit)
Cash Out Not allowed
Tax & Insurance Escrows Monthly deposits to the escrows are required for property insurance, real estate taxes, reserves for replacement and mortgage insurance premiums
Recourse Nonrecourse, subject to HUD Regulatory Agreement
Required Reports New Property Condition Needs Assessment (PCNA) required if last report is over two years old
Prepayment Typically 10% year 1, declining 1% per year; other prepayment options available subject to market conditions
Assumable Subject to Arbor and HUD approval and payment of assumption fee
Good Faith Deposit Negotiable based on loan size
Expense Escrow Yes – sufficient to cover Arbor’s expenses and third-party report costs
Origination Fee Negotiable
HUD Application Fee 0.15% of the new loan amount paid to HUD with Firm Commitment Application
HUD Inspection Fee Not applicable
Legal/Closing Fee Borrower pays Arbor’s counsel fee and miscellaneous closing costs
Repairs Repairs approved by HUD can be funded by mortgage proceeds with 10% completion assurance escrow; repairs are limited to $1,500 per unit
Davis Bacon Not applicable to this program
HUD Mortgage Insurance Premium (MIP) HUD sets the cost of the FHA Insurance

  • Market rate properties: 0.50% upfront, 0.50% annually
  • Affordable properties: 0.35% upfront, 0.35% annually
  • Broadly affordable or energy efficient properties: 0.25% upfront, 0.25% annually

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