FREDDIE MAC®
Fixed-Rate
Arbor provides competitive, tiered pricing for acquisition or refinance of multifamily projects nationwide, including recently completed projects.
| Loan Amount | $1,000,000 minimum. |
| 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 also available. |
| Minimum DSCR | 1.25/1.30 if a 5-year deal. |
| Maximum LTV | 7 year term or greater: 80%; 5-year term: 75%. |
| Rate Structure | Fixed. |
| Eligible Properties | Multifamily. |
| Eligible Borrower | Single Purpose Entity. |
| Tax & Insurance Escrows | Monthly deposits required. May be waived if certain criteria are met. |
| Replacement Reserves | Minimum $250 per unit per annum. May be waived if certain criteria are met. |
| Recourse | Non-recourse with standard exceptions 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 by Freddie Mac. |
| Required Reports | Appraisal, Property Condition Assessment, and Phase I Environmental, Zoning, Insect and Flood. |
| Prepayment | Defeasance for fixed-rate loans. 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 DSC 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 | 2% if greater than 5,000,000 of loan amount due at rate lock for early rate-lock transactions, but refundable post-closing. |
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