Arbor

About

Arbor Realty Trust, Inc. or Arbor is a publicly traded company on the New York Stock Exchange (NYSE: ABR). Arbor has been in business since 1983 and has provided over $37 billion in loans to property investors and commercial real estate owners nationwide. Arbor focuses on originating loans under the government loan programs also known as “agency” programs.

Loan Programs

Although Arbor offers a variety of loan programs, LendVer has awarded Arbor the 2019 Best Agency Multifamily Lender designation for its success in providing funds to multifamily property owners and investors under the Fannie Mae® and Freddie Mac® government loan programs. We’re not the only one that has recognized Arbor’s success in the multifamily lending field, the company has also been acknowledged as a Top 10 Fannie Mae Multifamily DUS® lender by loan volume for over a decade and is one of the longest tenured lenders licensed under the program.   

Fannie Mae® Multifamily Program Highlights / Guidelines

The benefit of Fannie Mae® multifamily financing with its various programs and loan options, is that it offers high-LTV, below market interest rates and fixed rate terms. Lenders operating under the Fannie Mae® multifamily program must be licensed to do so and follow certain guidelines and standards to meet various compliance requirements. Through Arbor’s significant experience with Fannie Mae® lending, it is able to walk you through the various programs (DUS®, Small Loan, Affordable Housing, etc.) available and help you select the loan option that best fits your needs.     

Loan sizes of $750,000 to $10+ million

  • Loans secured by multifamily 5+ units and mixed-use property with commercial space < 35% of net rentable area
  • Loan proceeds may be used for purchase or refinance of multifamily property, cash-out will be considered case-by-case
  • Adjustable and fixed rate loans from 5 to 30 years
  • Amortizations up to 30 years
  • LIBOR based pricing with below market interest rates
  • Minimum 1.25x DSCR requirement and minimum 85% occupancy requirement
  • LTVs up to 80% and declining or yield maintenance prepayment penalties
  • 0% to 1% loan origination fee plus good faith deposits required
  • Non-recourse with no personal guarantee allowed in most cases

Freddie Mac® Multifamily Program Highlights / Guidelines

The benefit of Freddie Mac® multifamily financing with its various programs and loan options, is that it offers high-LTV, below market interest rates, fixed rate terms and large loan sizes. Lenders operating under the Freddie Mac® multifamily program must be licensed to do so and follow certain guidelines and standards to meet various compliance requirements. Through Arbor’s significant experience with Freddie Mac® lending, it is able to walk you through the various programs (Small Balance, Floating Rate, Fixed Rate, etc.) available and help you select the loan option that best fits your needs.     

Loan sizes of $1 million to $100+ million

  • Loans secured by multifamily 5+ units and mixed-use property with commercial space < 40% of net rentable area
  • Loan proceeds may be used for purchase or refinance of multifamily property, cash-out will be considered case-by-case
  • Adjustable and fixed rate loans from 5 to 30 years
  • Amortizations up to 30 years
  • Below market interest rates
  • Minimum 1.20x DSCR requirement and minimum 85% occupancy requirement
  • LTVs up to 80% and declining or yield maintenance prepayment penalties
  • 0% to 1% loan origination fee plus good faith deposits required
  • Non-recourse with no personal guarantee allowed in most cases
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The Loan Process

LendVer did not shadow the application or loan process for Arbor but its website offers basic information about how to get started. Applicants can request a quote on Arbor’s website by filling out some general information, then a representative will reach out to assist with the process. Because agency loans can be very complex and involve a high-level of paperwork, we recommend utilizing the expertise of the Arbor staff to assist in selecting your program option and compiling your paperwork.

Arbor does offer an innovative online automated application and processing platform called ALEX. Arbor was the first agency lender to implement technology to automate the agency loan process to shave significant processing time (Arbor mentions that by using ALEX up to 23 hours in processing time is saved). ALEX offers two options to get started, the first is to submit some general information and an Arbor representative will reach out, the next is to complete a more comprehensive application. If you opt to complete the comprehensive application and it is done so correctly, Arbor states that it will evaluate your application in 3 hours or less.

The ALEX platform also touts e-signing of documents, a dedicated account executive and a 24/7 mobile or online view of your loans status. Since Arbor’s introduction of ALEX in 2016, it has funded almost $5 billion utilizing this platform. The ALEX platform breaks down the loan process into four straightforward steps: Application, Approval, Processing and Closing.  

Pros

  • Experienced agency lender with over $37 billion funded.
  • First to market ALEX automated loan processing platform makes an otherwise restrictive and paperwork laden borrowing process, simple and straightforward.
  • Below market rates, long fixed terms and high LTV for large loan sizes.
  • Arbor offers a variety of multifamily loan programs and the experience to assist you in selecting the correct product for your needs.
  • Non-recourse financing with no personal guarantee required in most cases.

Cons

  • Out-of-pocket costs can be high with an agency loan and due diligence fees paid prior to closing can be expensive.
  • Arbor’s loans are best suited for larger loan sizes and more experienced multifamily property owners and investors.
  • Pricing is driven by the strength of the market where the collateral is located as well as the strength of property cash-flow, therefore weaker markets and lower DSCRs will yield higher rates.

Why Arbor is the Best

Arbor has funded over $37 billion in loans since its inception and has been consistently ranked among the top agency lenders in the country. Arbor’s experienced team can help you navigate the difficulties of agency financing to take advantage of the below market loan terms it offers. Alex, Arbor’s innovative loan processing platform, can save you significant time and aggravation that often comes with obtaining an agency loan. With ALEX, Arbor has made agency financing accessible to a much larger base of eligible borrowers and brought it into the 21st century.  

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