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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

Fannie Mae Near-Stabilization Execution

Arbor’s DUS ARM 7-4 product offers a 7-year variable-rate financing option with an embedded cap, and fixed-rate conversion option for properties with 5 to 50 units and Multifamily Affordable Properties of any size.

  • LOAN AMOUNT $10,000,000 minimum
  • LOAN TERM 5-, 7-, 10-and 12-year term options available
  • AMORTIZATION Up to 30 Years
  • MINIMUM DSC Targeted underwritten DSCR of 1.25x. Underwritten DSCR is defined as DSCR as deemed achievable within 4 months after rate lock by the Lender and by Fannie Mae in its sole discretion.
  • MAZIMUM LTV 75% of “as stabilized” loan-to-value.
  • RATE STRUCTURE Fixed and variable rate interest options are available.
  • ELIGIBILE PROPERTIES Partially leased, newly constructed, or recently renovated conventional and affordable housing properties, which are 100% complete and expected to obtain stabilized occupancy within 120 days of rate lock.
  • ELIGIBLE BORROWER Strong borrower with demonstrated lease-up track record.
  • OCCUPANCY REQUIREMENT 75% physical occupancy
  • TAX AND INSURANCE ESCROWS Monthly deposits required. May be waived if certain criteria are met.
  • REPLACEMENT RESERVES Underwritten at a minimum $200 per unit per annum.
  • RECOURSE Non-recourse with standard exceptions for “bad acts”, such as for fraud and misrepresentation.
  • COMMERCIAL SPACE Maximum 35% of net rentable area and maximum 20% of effective gross income
  • REQUIRED REPORTS Appraisal, Property Condition Assessment and Phase I
  • PREPAYMENT Loans may be voluntarily prepaid upon payment of yield maintenance for fixed rate loans and graduated prepayment for variable rate loans.
  • ASSUMABLE Subject to approval and 1% fee
  • SUPPLEMENTAL LOANS Eligible for secondary financing after 12 months
  • PRICING Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.
  • RATE LOCK 30- to 180-day commitments. An early rate lock feature is available; allowing the borrower to lock the interest rate after the lender completes preliminary underwriting.
  • APPLICATION DEPOSIT $12,500. Covers all estimated underwriting costs (including processing fee).
  • PROCESSING FEE $3,000 non-refundable
  • ORIGINATION FEE Par Pricing available.
  • LEGAL CLOSING FEE Arbor’s Counsel Fee to be determined at application
  • GOOD FAITH DEPOSIT 2% of loan amount, due at rate lock, refundable post-closing

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