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GENERAL: 800.ARBOR.10

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 $5,000,000 to $100,000,000.
Loan Term 5, 7 and 10 year terms.
Amortization Up to 30 years. Interest-only options also available.
Minimum DSCR 1.05 / 1.10 if cash-out.
Maximum LTV 7 year term or greater: 80%; 5 year term: 75%.
Rate Structure Floating-rate option available; borrower must purchase an interest rate cap from a third party cap provider.
Eligible Properties Multifamily. Cooperatives not allowed.
Eligible Borrower Single Purpose Entity.
Tax & Insurance Escrows Monthly deposits required. May be waived if certain criteria are met.
Replacement Reserves 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.
Required Reports Appraisal, Properly Condition Assessment and Phase I Environmental, Zoning, Insect and Flood.
Prepayment Four main pre-payment options 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 available for higher DSC and lower LTV.
Rate Lock Early spread lock option available for varying durations, typically ranging from 60 to 120 days from spread lock until Freddie Mac purchase.
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 or post-purchase of the loan by Freddie Mac.

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