FANNIE MAE DUS®
Cooperative Apartment Financing
Arbor’s Cooperative Apartment Financing program provides blanket mortgage financing for cooperative multifamily housing.
| Loan Amount | $750,000 minimum |
| Loan Term | 5 to 30 years |
| Amortization | Up to 30 years |
| Minimum DSCR | 1.0x for cooperative; 1.55x as market rental project |
| Maximum LTV | 55% (on a market rental basis) |
| Rate Structure | Fixed rate |
| Eligible Properties | Cooperative projects, minimum five units, property condition rating of two or better, limited equity cooperative properties for low- and moderate-income families |
| Eligible Borrower | Single asset cooperative corporations |
| Market Acceptance | Property must be located in an area evidencing strong market acceptance of cooperative housing |
| Occupancy Requirement | 85% physical occupancy and 70% economic occupancy for 90 days prior to commitment date |
| Tax & Insurance Escrows | Monthly deposits required |
| Replacement Reserve | Underwritten at a minimum $250 per unit per annum |
| Recourse | Nonrecourse execution available with standard carve-outs for “bad acts” such as fraud and bankruptcy |
| Commercial Space | Eligible |
| Required Reports | Appraisal, Property Condition Assessment and Phase I Environmental |
| Prepayment | Loans may be voluntarily prepaid upon payment of yield maintenance |
| Subordinate Financing | Available through Fannie Mae supplemental loan program |
| Pricing | Tiered pricing matrix; more favorable terms available for higher DSC and lower LTV |
| Rate Lock | 30- to 180-day commitments; borrowers may lock a rate with the Streamlined Rate Lock option |
| Application Deposit | $20,500; covers estimated processing and legal fees |
| Origination Fee | Minimum 1%; par pricing available |
| Good Faith Deposit | 2% of loan amount, due at rate lock, refundable post-closing |
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