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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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GENERAL: 800.ARBOR.10

Home | Freddie Mac | Floating-Rate
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FREDDIE MAC®

Floating-Rate

Arbor’s Floating Rate program is ideal for multifamily borrowers who want to take advantage of lower short-term rates with prepayment flexibility.

Loan Amount Generally $5 million to $100 million; however, larger or smaller loan amounts are considered.
Loan Term 5-, 7- and 10-year terms
Amortization Up to 30 years. Interest-only options also available.
Minimum DSCR 1.00 at the max note rate, floaters must also be sized to a fixed-rate equivalent at 1.25x.
Maximum LTV 7-year term or greater: 80%; 5-year term: 75%.
Rate Structure Borrower must purchase an interest rate cap from a third-party cap provider. No cap necessary for loans with an LTV ratio of less than 60%.
Eligible Properties Multifamily. Cooperatives not allowed.
Eligible Borrower On loans over $5 million must be Single Purpose Entity (SPE)
On loans less than $5 million, borrower other than a tenancy in common may be a Single Asset Entity
Tax & Insurance Escrows Generally required
Replacement Reserves Generally required
Recourse Non-recourse with standard exceptions for fraud and misrepresentation.
Commercial Space No more than 40% of effective gross income and no more than 40% of the property’s total square footage.
Required Reports Appraisal, Property Condition Assessment and Phase I Environmental, Zoning, Insect and Flood.
Prepayment Four main prepayment options are available with no premium for final 90 days
Assumable Subject to approval and 1%
Subordinate Financing Not allowed
Pricing Tiered Pricing Matrix. More favorable terms are available for higher DSCR and lower LTV.
Rate Lock Early rate-lock option available for varying durations, typically ranging from 60 to 120 days from rate-lock until Freddie Mac purchase; 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 1% of the maximum mortgage amount, but not less than $25,000.

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