Articles

Renters Account for Majority of Household Growth

The number of rental households climbed nearly 2% last year, as 848,000 more households became renters, an analysis of the U.S. Census Bureau’s Housing Vacancies and Homeownership Survey shows (Chart 1). Rental households also hit a new high of 45.3 million, accounting for more than half of all U.S. household growth in 2024. Weakening affordability, evolving lifestyle preferences, and a limited supply of quality housing all contributed to surging multifamily and single-family rental (SFR) demand.

Articles

Solar Panel Usage Accelerates in Rental Properties

Solar panel installations, which skyrocketed in the U.S. over the last half-century, are projected to double to 10 million in just six years. While installations soared in all types of residences, owner-occupied properties significantly outpaced rentals. However, the evolving economics of solar power may be approaching a tipping point for single-family rental (SFR) operators looking for a differentiator.

Analysis

Small Multifamily Investment Snapshot — March 2025

Amid ongoing macroeconomic uncertainty, the small multifamily sector remains favorably positioned for stability as the structural need for affordable housing in the U.S. has supported the strength of the sector’s demand profile.

Articles

Top Markets for Rental Occupancy

Nationally, vacancies have risen, but the performance of rental housing is extremely localized. Out of the 75 largest U.S. metropolitan areas, the occupancy rate for all types of rental properties, including single-family rentals, 2-4 family, multifamily, and mobile homes, increased in 36 markets last year, while exceeding 95% in nearly one-third of all markets, according to an analysis of newly released U.S. Census Bureau data.[1] From Grand Rapids, MI, to Columbia, SC, the top markets for rental occupancy show where conditions are tightest and demand is strongest.

Current Reports

Single-Family Rental Investment Trends Report Q1 2025

Arbor’s Single-Family Rental Investment Trends Report Q1 2025, published in partnership with Chandan Economics, is an up-close look at the single-family rental (SFR) sector as it enters a period of normalcy after explosive pandemic-era growth. SFR maintains its balance with the support of a healthy set of fundamentals while capital markets rebound and rent growth moderates.

Articles

Small Multifamily Price Growth Trends Show Stabilization

Small multifamily price growth trends indicate a stabilization may be ready to take hold. Expanding on the findings of Arbor’s latest Small Multifamily Investment Trends Report, our research teams more closely examined valuations to determine if trends in pricing and other fundamentals are supporting a turnaround.

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

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