FREDDIE MAC®
Fixed-Rate
Arbor provides competitive, tiered pricing for the acquisition or refinancing of multifamily projects nationwide, including recently completed projects.
Loan Amount | Generally $5 million to $100 million; however, larger or smaller loan amounts are considered. |
Loan Term | 5 to 10 years. Up to 30 years for fixed-rate loans if loan is not purchased for securitization. |
Amortization | Up to 30 years. Interest-only options are also available. |
Minimum DSCR | 7-year term or greater: 1.25x; 5-year term: 1.30x |
Maximum LTV | 7-year term or greater: 80%; 5-year term: 75%. |
Rate Structure | Fixed |
Eligible Properties | Multifamily |
Eligible Borrower | Loans greater than $5 million, borrower must be Single Purpose Entity. Loans under $5 million, borrower may be a Single Asset Entity. |
Tax & Insurance Escrows | Generally required |
Replacement Reserves | Generally required |
Recourse | Non-recourse except for standard carve-out provisions |
Commercial Space | No more than 40% of effective gross income and no more than 40% of property’s total square footage. Final determination made by Freddie Mac. |
Required Reports | Appraisal, Property Condition Assessment and Phase I Environmental, Zoning, Insect and Flood. |
Prepayment | Yield maintenance until securitized followed by two-year lock-out; defeasance thereafter. No prepayment premium for final 90 days of term. Additional prepayment options are available. |
Assumable | Subject to approval and 1% |
Subordinate Financing | Not allowed |
Pricing | Tiered Pricing Matrix. More favorable terms available for higher DSCR and lower LTV. |
Rate Lock | Early rate-lock option available for varying durations, typically ranging from 60 to 120 days until Freddie Mac purchase; Index Lock option is also available. Sellers should consult with their regional Freddie Mac representative to determine eligibility |
Application Deposit | $26,500. Covers all estimated underwriting costs (including application fee). |
Legal/Closing Fee | Arbor’s Counsel Fee to be determined at application |
Good Faith Deposit | Greater of 2% of the maximum mortgage amount or $50,000 due at rate lock for early rate-lock transactions less than eight months, but refundable post-closing. |
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