FREDDIE MAC® Floating Rate

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Arbor’s Floating Rate program is ideal for multifamily borrowers who want to take advantage of lower short-term rates with prepayment flexibility.

Loan Amount $5,000,000 to $100,000,000
Loan Term 5-, 7- and 10-year terms
Amortization Up to 30 Years. Interest-only options also available.
Minimum DSC 1.05 / 1.10 if cash-out
Maximum LTV 7-year term or greater: 80%; 5-year term: 75%
Rate Structure Floating-rate option available; borrower must purchase an interest rate cap from a third party cap provider
Eligible Property Multifamily. Cooperatives not allowed.
Eligible Borrower Single-purpose entity
Tax and Insurance Escrows Monthly deposits required. May be waived if certain criteria are met
Replacement Reserves 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.
Required Reports Appraisal, Properly Condition Assessment and Phase I Environmental, Zoning, Insect and Flood
Prepayment Four main prepayment options available with no premium for final 90 days
Assumable Subject to approval and 1%
Subordinate Financing Not allowed
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.
Rate Lock Early spread lock option available for varying durations, typically ranging from 60 to 120 days from spread lock until Freddie Mac purchase
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 or post-purchase of the loan by Freddie Mac
Arbor Commercial Mortgage | | 800.ARBOR.10