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® 241(a):

SUPPLEMENTAL LOAN FOR REPAIRS, ADDITIONS OR IMPROVEMENTS TO HUD FIRST MORTGAGE PROPERTIES

HUD-Insured second mortgage provided by Arbor to finance repairs, additions and improvements to multifamily properties and healthcare facilities with existing HUD-insured first mortgage.

Loan Term Generally co-terminus with the HUD first mortgage
Amortization Fully amortizing
Maximum Loan Amount Will be the lessor of:

  • 90% loan to cost
  • 90% loan to value
  • 1.11 Debt Service Coverage Ratio (combined first and second)
Rate Structure Fixed rate
Eligible Properties Apartment properties and healthcare facilities with an existing HUD-insured first mortgage
Eligible Borrowers Single asset entity (nonprofit entities eligible)
Recourse Nonrecourse, subject to HUD Regulatory Agreement
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
HUD Mortgage Insurance Premium Annual MIP Rates (Multfamily):

  • Market Rate Properties: 0.95%
  • Affordable Properties: 0.35%
  • Broadly Affordable or Energy Efficient Properties: 0.25%

 
 

Annual MIP Rates (residential healthcare):

  • Without LIHTC: 0.72%
  • With LIHTC: 0.45%

 
 

Annual MIP Rates (hospitals):

  • 0.65%
Davis Bacon Applicable, if the original underlying HUD first mortgage was subject to Davis Bacon

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