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GENERAL: 800.ARBOR.10

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 $12,500. 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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