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.

Articles

U.S. Added 514,000 New Rental Households in 2023

In a year when inflation and elevated interest rates weakened affordability, the rental housing sector strengthened and expanded. An analysis of newly released U.S. Census Bureau Housing Vacancies and Homeownership data shows the number of rental households climbed in 2023.

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Articles

Build-to-Rent Construction Starts Surge to New High in 2023

Over the last decade, single-family rental (SFR) operators have been increasingly focusing on build-to-rent (BTR) development as the needs and preferences of renters have shifted. As explored in the latest Arbor Single-Family Rental Investment Trends Report, SFR/BTR development has surged at a time when new, for-sale, single-family home starts have declined.

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FHA® 232/223(a)(7):

REFINANCING HUD-INSURED HEALTHCARE LOANS

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 loan plus up to 12 years (subject to HUD approval); term cannot exceed the original term of the existing loan; loan is fully amortizing through the term of the loan
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
Interest Rate Fixed rate subject to market conditions at time of rate lock
Eligible Properties Healthcare facilities currently insured under Sections 232 and 232/223f
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 Non-recourse
Required Reports New Property Condition Needs Assessment (PCNA) required if last report is over two years old
Prepayment Typically 10% year one, 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 Based on property type and 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 HUD 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 required from owner; repairs limited to $1,500 per unit
Davis Bacon Not applicable to this program
HUD MORTGAGE INSURANCE PREMIUM (MIP) 0.50% up front; market rate 0.55% annually; LIHTC 0.45% annually

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