Articles

Five Advantages of FHA Multifamily Construction Loans

In the last three years, multifamily construction has reached levels not seen since the 1980s, supported, in part, by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) loans. If you are exploring the acquisition, refinancing, rehabilitation, or new construction of conventional multifamily, affordable housing, seniors housing, or a healthcare facility, consider FHA multifamily construction loans, a stable financing option with excellent terms and many other attractive advantages.

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Where are Single-Family Rental (SFR) Rents Rising the Fastest?

While the single-family rental (SFR) sector’s rent growth averages have retreated from record highs, structural tailwinds are keeping price growth positive — both nationally and in major SFR markets. In this research brief, Chandan Economics and Arbor Realty Trust analyze DBRS Morningstar data, which covers the top 20 MSAs by SFR activity, to discover the metropolitan areas where SFR rent growth is the hottest right now.

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Fannie Mae Small Loans Cap Raised to $9 Million

Fannie Mae recently announced that its Small Loan cap has increased from $6 million to $9 million for all loans committed as of August 22, 2023. Multifamily borrowers and lenders have praised the change to the Fannie Mae Small Loans program, which will encourage greater investment in a rapidly growing sector where demand remains high despite market volatility.

Articles

The Top Five Emerging Metros for Retiree Relocation

As Baby Boomers reach retirement age, their evolving geographic preferences are strengthening housing markets and local economies in new locations, which feature attractive climates, relative affordability, and ample outdoor activities. With swelling populations of senior citizens, our top five emerging metropolitan areas for retiree relocation are fertile ground for multifamily real estate investment.

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Home | Freddie Mac | Fixed-Rate
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FREDDIE MAC®

Fixed-Rate

Arbor provides competitive, tiered pricing for the acquisition or refinancing of multifamily projects nationwide, including recently completed projects.

Loan Amount Generally $5 million to $100 million; however, larger or smaller loan amounts are considered.
Loan Term 5 to 10 years. Up to 30 years for fixed-rate loans if loan is not purchased for securitization.
Amortization Up to 30 years. Interest-only options are also available.
Minimum DSCR 7-year term or greater: 1.25x; 5-year term: 1.30x
Maximum LTV 7-year term or greater: 80%; 5-year term: 75%.
Rate Structure Fixed
Eligible Properties Multifamily
Eligible Borrower Loans greater than $5 million, borrower must be Single Purpose Entity. Loans under $5 million, borrower may be a Single Asset Entity.
Tax & Insurance Escrows Generally required
Replacement Reserves Generally required
Recourse Non-recourse except for standard carve-out provisions
Commercial Space No more than 40% of effective gross income and no more than 40% of property’s total square footage. Final determination made by Freddie Mac.
Required Reports Appraisal, Property Condition Assessment and Phase I Environmental, Zoning, Insect and Flood.
Prepayment Yield maintenance until securitized followed by two-year lock-out; defeasance thereafter. No prepayment premium for final 90 days of term. Additional prepayment options are available.
Assumable Subject to approval and 1%
Subordinate Financing Not allowed
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSCR and lower LTV.
Rate Lock Early rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase; Index Lock option is also available. Sellers should consult with their regional Freddie Mac representative to determine eligibility
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 Greater of 2% of the maximum mortgage amount or $50,000 due at rate lock for early rate-lock transactions less than eight months, but refundable post-closing.

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