FREDDIE MAC®
Cooperative Apartment Financing
Arbor provides blanket mortgage financing for cooperative multifamily housing through Freddie Mac.
| Loan Amount | $1,000,000 minimum. |
| Loan Terms | Loan terms of 5, 7 or 10 years available; longer loan terms may be considered. |
| Amortization | Up to 30 years. Interest-only options also available. |
| Minimum DSCR | 1.0 for cooperative; 2.5 for rental project. |
| Maximum LTV | 40% for cooperative. Less than 40% for rental project. |
| Rate Structure | Fixed-rate. |
| Eligible Properties | Multifamily |
| Eligible Borrower | Single Purpose Entity. |
| Market Acceptance | Property must be located in an area evidencing strong market acceptance of cooperative housing. |
| Tax & Insurance Escrows | Monthly deposits required. May be waived if certain criteria are met |
| Replacement Reserves | Monthly deposits required. May be waived if certain criteria are met. |
| Recourse | Non-recourse with standard exceptions for fraud and misrepresentation. |
| Commercial Space | No more than 25% of effective gross income and no more than 25% of property’s total square footage. Final determination by Freddie Mac. |
| Required Reports | Appraisal, Property Condition Assessment, Phase I Environmental, Zoning, Insect and Flood. |
| Prepayment | Defeasance or yield maintenance for fixed rate loans. There will be a charge of 5 bps for yield maintenance. |
| Subordinate Financing | Not allowed. |
| Pricing | Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV. |
| Rate Lock | Standard 5 day rate-lock period. Early/extended rate lock options available. |
| Application Deposit | $26,500. Covers all estimated underwriting costs (including application fee). |
| Legal/Closing Fee | Arbor’s Counsel Fee to be determined at application. |
| Good Faith Deposit | 2% of loan amount due at rate lock for early rate-lock transactions, but refundable post-closing. |
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