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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
The Beacon at Gateway
Scarborough, ME | DUS Standard Loan
Mesquite, TX | Freddie Mac Conventional
Cross Creek Apartments
Kingsport, TN | DUS Standard Loan
The Goose Apartments
Aloha, OR | DUS Standard Loan
Montage Embry Hills
Atlanta, GA | Freddie Mac Conventional
Oracle Canyon Apartments
Tucson, AZ | Freddie Mac SBL