Articles

Arbor’s New True Colors Show Our Creativity and Green Roots

For more than 30 years, Arbor has been committed to growing financial partnerships that meaningfully impact communities nationwide. From planting trees to celebrate closed loans to supporting environmental organizations, our work has always been a win-win for our financial partners and the planet. But just as leaves change with each passing season, Arbor’s branding is evolving to seize the moment by embracing our roots with True Colors.

Articles

Five Advantages of Adding Fannie Mae Green Rewards to a Multifamily Loan

Since the Fannie Mae Green Rewards program launched in 2015, green financing has become a mainstay of commercial real estate. In addition to reducing the environmental impact of multifamily housing, the Green Rewards program creates a triple bottom line with increased cash flows, higher quality housing, and lower energy and water usage. With a high upside and little downside, the program is well worth multifamily borrowers’ consideration.

Articles

CRE Solutions for a Greener Planet Build Momentum

From California wildfires to rising sea levels to Florida hurricanes, the direct and indirect risks of climate change have grown in recent years, making a more substantial impact on the multifamily sector. As the need for sustainability becomes increasingly apparent, lawmakers and lenders have advanced programs and policies that show “going green” is a win-win.

Current Reports

Affordable Housing Trends Report Spring 2024

As housing costs spiral, rental affordability has become a more urgent issue, burdening a greater number of Americans. Arbor’s Affordable Housing Trends Report Spring 2024, developed in partnership with Chandan Economics, examines the major policies and programs shaping the marketplace at a time when overdue federal funding expansions have increased agency budgets.

Articles

What Is Driving Lifestyle Renter Demand?

Lifestyle renters — those who have the means to own but prefer to rent or are willing to pay more for apartments with amenities — have become a key driver of rental demand in single-family rental homes, build-to-rent communities, and other types of high-quality multifamily housing. With this small yet influential demographic growing, our research teams examine and explain the factors driving lifestyle renter demand.

Articles

Build-to-Rent Well-Positioned to Fill Housing Market Gap

With nearly one-fifth of multifamily properties now over 65 years old, it’s time to consider solutions for rejuvenating the rental housing stock in the U.S. While building rehabs are a tried-and-true solution, build-to-rent (BTR) is an alternative that is well-positioned to expand as Americans increasingly favor renting over homeownership.

General: 800.ARBOR.10

Home | FHA Multifamily | FHA 223(a)(7)
Download PDF
|email

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

V030419

ARBOR.COM | 800.ARBOR.10
Download PDF
|email

Request a Quote

Fill out a simple form and an expert loan originator will contact you shortly.