FREDDIE MAC® Cooperative Apartment Financing

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Arbor provides blanket mortgage financing for cooperative multifamily housing through Freddie Mac.

Loan Amount $1,000,000 minimum
Loan Terms Loan terms of 5-, 7- or 10-years available; longer loan terms may be considered
Amortization Up to 30 Years. Interest-only options also available.
Minimum DSC 1.0 for cooperative; 2.5 for rental project
Maximum LTV 40% for cooperative. Less than 40% for rental project.
Rate Structure Fixed-rate
Eligible Property Multifamily
Eligible Borrower Single-purpose entity
Market Acceptance Properly must be located in an area evidencing strong market acceptance of cooperative housing
Tax and Insurance Escrows Monthly deposits required. May be waived if certain criteria are met
Replacement Reserves Monthly deposits required. May be waived if certain criteria are met.
Recourse Non-recourse with standard exceptions for fraud and misrepresentation
Commercial Space No more than 25% of effective gross income and no more than 25% of property’s total square footage. Final determination by Freddie Mac.
Required Reports Appraisal, Properly Condition Assessment and Phase I Environmental, Zoning, Insect and Flood
Prepayment Defeasance or yield maintenance for fixed rate loans. There will be a charge of 5 bps for yield maintenance.
Subordinate Financing Not allowed
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.
Rate Lock Standard 5-day rate-lock period. Early Rate-Lock options available.
Application Deposit $12,500. Covers all estimated underwriting costs (including application fee).
Legal / Closing Fee Arbor’s Counsel Fee to be determined at application
Good Faith Deposit 2% of loan amount due at rate lock for early rate-lock transactions, but refundable post-closing
Arbor Commercial Mortgage | | 800.ARBOR.10