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Home | Fannie Mae | Near-Stabilization Execution
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FANNIE MAE DUS®

Near-Stabilization Execution

Arbor provides Fannie Mae’s Multifamily Mortgage Business permanent mortgage loan financing for newly constructed or recently renovated conventional and affordable multifamily apartment communities expected to achieve stabilized occupancy within 120 days.

Loan Amount $10M smaller loan amounts may be considered
Loan Term 5-, 7-, 10- and 12-year term options available
Amortization 5 – 30 years
Minimum DSCR Targeted underwritten DSCR of 1.25x (Up to 1.15 for MAH loans). 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 & Insurance Escrows Monthly deposits required. May be waived if certain criteria are met.
Replacement Reserves Underwritten at a minimum $250 per unit per annum
Recourse Non-recourse execution with standard carve-outs for “bad acts” such as fraud and bankruptcy
Commercial Space Maximum 35% of net rentable area and maximum 20% of effective gross income
Required Reports Appraisal, Property Condition Assessment, Phase I Environmental
Prepayment Flexible prepayment options available, including yield maintenance and declining prepayment premium
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 120-day commitments; Borrowers may lock a rate with the Streamlined Rate Lock option
Accrual 30/360 and Actual/360
Application Deposit $20,500. Covers estimated processing and legal fees
Origination Fee Minimum 1.00%
Good Faith Deposit 2% of loan amount, due at rate lock, refundable post-closing

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