FANNIE MAE® Green Financing

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Arbor’s Fannie Mae Multifamily suite of green financing solutions includes options for acquisition, refinance, and supplemental financing.
Green Financing solutions create a “triple bottom line” by supporting increased cash flows, better quality housing, and reduced energy and water usage.

Great Incentives
  • Lower interest rate
  • Energy and water audit report 100% paid for by Fannie Mae
  • Up to 5% more in loan proceeds for Green Rewards and Green Preservation Plus loans.
Minimum Loan Amount No minimum or maximum
Loan Term Up to 30 Years
Amortization Green Rewards: Up to 30 Years. Interest-only options also available.
Green Preservation Plus: Up to 40 years. 30 years for balloon structures. Interest-only periods not permitted.
Minimum DSCR Green Rewards: 1.25 Conventional, 1.20 Affordable
Green Building Certification Pricing Break: 1.25 Conventional, 1.20 Affordable
Green Preservation Plus: 1.15 Affordable
Maximum LTV Green Rewards and Green Building: Up to 80%
Green Preservation Plus: Up to 85%
Rate Structure Fixed- and adjustable- rate options available for Green Rewards and Green Building Certification; Fixed rate only for Green Preservation Plus.
Interest Accrual Method 30/360 and Actual/360
Eligible Property Conventional, Affordable, Senior, Military and Cooperative properties nationwide
Borrowers must commit to installing capital improvements that target a 20% or more reduction to the whole property’s annual energy or water use.
Eligible Borrower Single Asset Entity
Occupancy Requirement 85% Physical Occupancy for 90 days. 70% economic occupancy required.
Tax and Insurance Escrows Monthly deposits required.
Replacement Reserve Monthly deposits required. Underwritten at a minimum $250 per unit per annum.
The cost of the agreed-upon property improvements for Green Rewards will be escrowed at 100% until completion; for Green Preservation Plus at 125%.
Recourse Non-recourse with standard exceptions for fraud, misrepresentation and other non-recourse carve-outs (i.e., illegal transfers).
Commercial Space Maximum 35% of net rentable area and maximum 20% of effective gross income
Required Reports Appraisal, Property Condition Assessment and Phase I. A High Performance Building report (HPB) is required for Green Rewards and Green Preservation Plus. Fannie Mae reimburses 100% of the cost for the HPB subject to the loan closing at Green Rewards.
Prepayment Yield Maintenance and other declining prepayment options are available.
Assumable Subject to approval and 1% fee
Subordinate Financing Not allowed without written approval
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.
Rate Lock Standard 10-day rate lock period. Early/Extended rate lock options available.
Application Deposit $12,500. Covers all estimated underwriting costs (including processing fee).
Processing Fee $3,000 non-refundable
Origination Fee Minimum 1%. Par pricing available.
Legal/Closing Fee Arbor’s Counsel Fee to be determined at application
Good Faith Deposit 2% of loan amount, due at rate lock, but refundable
Arbor Commercial Mortgage | | 800.ARBOR.10