FANNIE MAE® Supplemental

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Whether your Arbor Fannie Mae loan was executed on a market rate or affordable property; under the Forward Commitment or Small Loans program; on a cooperative complex or student-based property, you are eligible for a supplemental loan under the Fannie Mae DUS® program.

Loan Amount

$500,000 minimum

Loan Term Up to 30 Years. Must be coterminous with original mortgage.
  • The Fannie Mae first mortgage must have been an Arbor transaction
  • At Least 12 months must elapse between the closing of a DUS® Supplemental Loan and the closing of the latest placed pre-existing mortgage
  • The term of the supplemental mortgage must be at least 5 years
Acceptable Transactions
  • Fixed-rate or ARM regardless of the rate structure on the preexisting loan
  • Supplemental loans are allowed on Affordable deals (MAH), but restricted to DSCR of 1.25 and LTV of 80% for adjustable rate and DSCR of 1.30 and LTV of 75% for fixed rate
  • Small Loans are eligible for supplemental loans
  • Funding of replacement reserves will be for the first loan only, unless additional funding is required
  • A new title insurance policy is required
  • No new survey is required, provided the title meets certain requirements
  • A third party appraisal report is required
  • One DUS® supplemental loan is permitted during the term of the first mortgage lien; however, a second DUS® supplemental loan can be used in connection with a sale and assumption to an unrelated new borrower or in connection with DUS Plus or Community Investments Mezz
  • The closing and funding of the second supplemental loan MUST occur simultaneously with the sale and assumption of the existing debt
  • Less than 7 years left on term of first, the supplemental loan sizing in subject to additional exit risk analysis
Minimum DSC

1.30 on a coterminous loan

Maximum LTV

70% on a non-coterminous loan


Yield maintenance or defeasance

Assumable Subject to approval and 1% fee (non-recourse loans only)
Application Fees $10,000 for Small Loans
$12,500 for DUS®
Arbor Commercial Mortgage | | 800.ARBOR.10