INSIDE THE DEAL: Arbor Funds Small Loan for Affordable Apartments
- Feb 10, 2009
By Keat Foong, Executive EditorNorman, Okla.—Not every Fannie Mae-authorized Small Loan lender finances affordable projects, but Brookstone Cottages obtained just such a financing from Arbor Commercial Funding LLC. A wholly owned subsidiary of Arbor Commercial Mortgage LLC, Arbor Commercial Funding provided a $1.575 million mortgage for the newly constructed 64-unit property, which receives the Low Income Housing Tax Credits (LIHTC). Arbor Commercial Funding is authorized to make Fannie Mae small loans (loans of less than $3 million in most markets). Jay Porterfield, vice president in Arbor’s full-service Plano, Texas office, who originated the loan, said the property was “well run” and cited the “high-quality LIHTC property with a very experienced borrower.” Brookstone Cottage is three years old, and it is obtaining a 15-year loan term to match the compliance period of the tax credit program. “Arbor is one of only a handful of DUS [Delegated Underwriting and Servicing] lenders actively funding affordable housing properties within our Small Loan program,” said Porterfield. The note rate was 6.61 percent.