About Chatter

Welcome to Chatter! We’re happy to be your source for multifamily news, research and insight. Bookmark us and be sure to sign up for our weekly newsletter to stay on top of all things financing and investment for the multifamily industry. We also invite you to follow us on Twitter. What is Chatter? So what Read the full article…

Research

How Big is Small Cap Multifamily?

A closer look at the multifamily housing inventory in the United States and the size of the small cap investment opportunity.

Around the Web

Multifamily Forecast: Investors Moving to Secondary Markets

The apartment sector has remained the darling of the commercial real estate for the past six years. This doesn’t appear to be changing anytime soon, as 2016 is expected to set a new record for multifamily mortgage origination volume. While multifamily’s position as top dog remains uncontested, savvy investors are altering their strategy for sourcing Read the full article…

GENERAL: 800.ARBOR.10

FREDDIE MAC®

Small Balance Loan (SBL) Program

Arbor’s Freddie Mac Small Balance Loan program streamlines the entire loan process for multifamily acquisition and refinancing loans ranging from $1M to $7.5M.

Loan Amount Up to $7.5M in all markets
Note: Deals greater than $6M and up to $7.5M in small and very small markets may be permitted, subject to Freddie’s approval of an exception request
Unit Limitations
  • Loan amount ≤ $6M: no unit limitations
  • Loan amount > $6M and ≤ $7.5M: up to 100 units (exceptions permitted above 100
    units)
Loan Term Fixed-rate loan terms of 5, 7 or 10 years; hybrid ARM loan terms of 20 years with initial 5, 7 or 10 years fixed
Amortization Up to 30 years; interest-only options also available
Minimum DSCR 1.20 in top markets; 1.25 in standard markets; 1.30 in small markets; 1.40 in very small
markets; minimum 1.25x amortizing DCR for loans greater than $6M
Maximum LTV 80% in top and standard markets
75% if acquisition in small/very small markets
70% refinance in small/very small markets

Full-Term Interest Only DSC/LTV Thresholds
  • Minimum DSC 1.35/maximum LTV 65% in top markets
  • Minimum DSC 1.40/maximum LTV 65% in standard markets
  • Minimum DSC 1.40/maximum LTV 60% in small markets
  • Minimum DSC 1.50/maximum LTV 60% in very small markets
Rate Structure Fixed and hybrid ARM loan terms available
Eligible Properties Multifamily, minimum five residential units
Eligible Borrower Up to $6M – individuals who are U.S. citizens; LPs; LLCs; SAEs; SPEs; TICs with up to five unrelated members; and trusts (irrevocable and revocable with warm-body guarantor)
Between $6M and $7.5M – single asset entities
Occupancy Requirement Property must generally be stabilized at 90% physical occupancy for the trailing three-month average prior to underwriting or 85% for the trailing three-month average prior to underwriting under certain scenarios
Tax & Insurance Escrows Real estate tax escrow deferred for deals with 65% LTV or less; insurance escrow deferred
Replacement Reserves Underwritten at a minimum $200 per unit per annum; replacement reserve escrow deferred, subject to acceptable property condition
Commercial Space Allowed up to 40% of total net rental income; no more than 40% of building’s square footage
Recourse Nonrecourse with standard carve-out provisions required
Prepayment Declining schedules and yield maintenance available for all loan types; all
prepayment options open for prepayment without penalty three months prior to
maturity
Assumable Subject to approval and 1% fee
Pricing Tiered pricing matrix; more favorable terms available for higher DSC and lower LTV
Rate Lock 60-, 90-, 120-, 150-, 180-day extended delivery options available
Freddie Mac Fee Nonrefundable application fee (0.1% of loan amount in all markets except top markets) collected at time of rate lock
Good Faith Deposit 1% of loan amount due upon acceptance and execution of the SBL Rate Lock Application; refundable post-closing
Top Markets New York-Kings-Queens-Bronx-Richmond-Rockland-Westchester-Orange-Suffolk-Nassau-Bergen-Essex-Hudson-Somerset-Middlesex-Passaic-Union-Monmouth-Morris (NY-NJ-PA); Middlesex-Norfolk-Suffolk-Essex-Plymouth (MA-NH); District of Columbia-Montgomery-Prince George’s-Arlington-Alexandria-Fairfax-Fairfax City-Falls Church City (DC-VA-MD-WV); Dallas (TX); Cook-Lake-DuPage (IL-IN-WI); Los Angeles-San Francisco-Sacramento-Contra Costa-Marin-Alameda-Orange-Santa Clara-San Mateo-San Diego (CA); Denver-Jefferson-Arapahoe-Adams (CO); Fairfield (CT); Miami-Broward-Palm Beach (FL); Dakota-Ramsey-Hennepin-Anoka (MN-WI); Washington-Clackamas-Clark-Multnomah-King-Pierce-Snohomish (OR-WA)

V011420

Recent Closings

of

Request a Quote

Fill out this simple form and an expert loan originator will contact you shortly.
* All fields required.