FANNIE MAE® Near-Stabilization Execution

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Arbor’s DUS ARM 7-4 product offers a 7-year variable-rate financing option with an embedded cap, and fixed-rate conversion option for properties with 5 to 50 units and Multifamily Affordable Properties of any size.

Loan Amount

$10,000,000 minimum

Loan Term 5-, 7-, 10-and 12-year term options available

Up to 30 Years

Minimum DSC Targeted underwritten DSCR of 1.25x. Underwritten DSCR is defined as DSCR as deemed achievable within 4 months after rate lock by the Lender and by Fannie Mae in its sole discretion.
Maximum LTV 75% of “as stabilized” loan-to-value.
Rate Structure

Fixed and variable rate interest options are available.

Eligible Properties

Partially leased, newly constructed, or recently renovated conventional and affordable housing properties, which are 100% complete and expected to obtain stabilized occupancy within 120 days of rate lock.

Eligible Borrower

Strong borrower with demonstrated lease-up track record.

Occupancy Requirement

75% physical occupancy

Tax and Insurance Escrows Monthly deposits required. May be waived if certain criteria are met.
Replacement Reserves Underwritten at a minimum $200 per unit per annum.
Recourse Non-recourse with standard exceptions for “bad acts”, such as for fraud and misrepresentation.
Commercial Space Maximum 35% of net rentable area and maximum 20% of effective gross income
Required Reports Appraisal, Property Condition Assessment and Phase I
Prepayment Loans may be voluntarily prepaid upon payment of yield maintenance for fixed rate loans and graduated prepayment for variable rate loans.
Assumable Subject to approval and 1% fee
Supplemental Loans Eligible for secondary financing after 12 months
Pricing Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.
Rate Lock 30- to 180-day commitments. An early rate lock feature is available; allowing the borrower to lock the interest rate after the lender completes preliminary underwriting.
Application Deposit $12,500. Covers all estimated underwriting costs (including processing fee).
Processing Fee $3,000 non-refundable
Origination Fee 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, refundable post-closing
Arbor Commercial Mortgage | | 800.ARBOR.10