Articles

Multifamily Households Set Yet Another Record

Multifamily households reached a new high for the third consecutive year in 2023, extending a growth spurt that began after the 2008 housing crisis. With strong tailwinds at its back, multifamily’s latest record may not stand for very long.

Analysis

Arbor’s Top Articles of 2024: Multifamily Investment Opportunities Emerge

The U.S. multifamily market held steady in a more normalized cycle during 2024, following the pandemic-related economic contraction and its rapid recovery. Rental demand remained strong, driven by the ongoing nationwide housing shortage and robust wage growth, as younger generations continued to embrace lifestyle renting.

Articles

Government Shutdown: What Multifamily Borrowers Need to Know

Unless an 11th-hour agreement is reached, an impasse will trigger the first U.S. government shutdown since 2019. Starting December 21, 2024, many non-essential federal government operations will be limited or suspended, but most multifamily financing activities will not be disrupted.

Current Reports

Single-Family Rental Investment Trends Report Q4 2024

With home prices nearing all-time highs, single-family rental (SFR) housing is uniquely positioned to capture an even larger slice of the for-sale market. As structured capital markets rebound, SFR will benefit from a set of tailwinds that include robust levels of new construction and favorable trends in cap rates and debt yields. Arbor’s Single-Family Rental Investment Trends Report, developed in partnership with Chandan Economics, shows why this sector’s prospects are so strong.

Articles

Arbor Sponsors LGBTQIA+ Career Growth Events

Building on an organizational commitment to the inclusion of individuals from all backgrounds, Arbor — in partnership with the Real Estate Pride Council and Dr. Sam Chandan, Founder of Chandan Economics, Founding Director, NYU Stern School of Business C.H. Chen Institute for Global Real Estate Finance, and Co-Chair of the Real Estate Pride Council — hosted a speed networking event in Manhattan on November 20 for local LGBTQIA+ students and commercial real estate mentors.

Articles

Video: Dr. Sam Chandan Discusses Investment Opportunities in Multifamily

As the interest rate outlook brightens, unique opportunities for outsized returns abound, Dr. Sam Chandan, Founding Director of the C.H. Chen Institute for Global Real Estate Finance at the NYU Stern School of Business and the Non-Executive Chairman of Chandan Economics, explains in this top-level overview of Arbor’s latest Special Report.

General: 800.ARBOR.10

FREDDIE MAC®

Supplemental Mortgage

The Freddie Mac Supplemental Mortgage offers an additional option in conjunction with a newly originated or seasoned conventional multifamily mortgage.

Loan Amount $1M minimum
Loan Term Seasoned – must be coterminous with original mortgage
Requirements
  • The Freddie Mac first mortgage must have been an Arbor transaction
  • At least 12 months must elapse since the closing of the first mortgage or the closing of the previous supplemental mortgage
  • The term of the supplemental mortgage must be at least three years
Acceptable Transactions
  • Fixed or floating regardless of the rate structure on the preexisting loan
  • Supplemental loans are allowed on conventional deals, not to exceed DCR and LTV requirements from the first mortgage lien or current Freddie Mac Credit Policy.
Workings
  • Origination of a supplemental mortgage behind a securitized mortgage will trigger collection of any deferred reserves for that first mortgage
  • Real estate tax reserve, even if not required for the first mortgage
  • A new title insurance policy is required
  • No new survey is required, provided the title meets certain requirements
  • A new third-party appraisal report and engineering report is required; an environmental database review is required
Limitations
  • Unlimited (subject to all terms and conditions)
  • When less than five years left on term of first, the supplemental loan sizing is subject to additional exit risk analysis
Minimum DSCR Not to exceed DCR requirements from the first mortgage lien or current Freddie Mac Credit Policy.
Maximum LTV Initial LTV unless otherwise noted
Eligible Borrower Original borrower or lender-approved transferee
Prepayment Yield maintenance
Assumable Subject to approval and 1% fee
Application Fees $12,500
Origination Fee Par pricing not available

V020623

Request a Quote

Fill out a simple form and an expert loan originator will contact you shortly.