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Research

How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

Around the Web

Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…

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 and existing HUD-insured first mortgage.
Eligible Borrowers Single Asset Entity (non-profit entities eligible).
Recourse Non-recourse, subject to HUD Regulatory Agreement.
Prepayment Typically 10% year 1, declining 1% per year. Other pre-payment 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%

 
 

(Hospitals)

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

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