||Seasoned – Must be coterminous with original mortgage or may exceed original mortgage by up to 24 months.
- The Freddie Mac first mortgage must have been an Arbor transaction
- At least 12 months must elapse between the closing of the first mortgage or the closing of the previous supplemental mortgage
- The term of the supplemental mortgage must be at least 3 years
- Fixed or floating regardless of the rate structure on the pre-existing loan
- Supplemental loans are allowed on conventional deals, but restricted to DSCR of 1.25 and LTV if 80% for acquisitions and DSCR of 1.30 and LTV of 75% for cash-out refinances. Subject to Freddie Mac credit posture at time of application.
- Origination of a supplemental mortgage behind a securitized mortgage will trigger collection of any deferred reserves for that first mortgage
- Real estate tax reserve, even if not required for the first mortgage
- A new title insurance policy is required
- No new survey is required, provided the title meets certain requirements
- A new third-party appraisal report is required. An environmental database review is required. A new engineering report may be required, as determined by Freddie Mac.
- Unlimited; however, subject to all terms and conditions.
- Less than 5 years left on term of first, the supplemental loan sizing is subject to additional exit risk analysis
||1.25 for acquisition, 1.30 for cash-out refinance
||Initial LTV unless otherwise noted
||Original Borrower or lender-approved transferee
||Subject to approval and 1% fee (non-recourse loans only)
||Par pricing is not available.