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June 2001

GFS closes Fannie Mae 5/50 loan

Gomberg Financial Services recently closed our first Fannie Mae 5/50 loan  through Arbor Commercial Mortgage.

The loan amount of $1.2 million was for the refinance of a 30-unit brick apartment building. The property was built in 1969 and is located at 301 Grant St., Framingham, MA.

This was an 80% LTV, non-recourse transaction that Arbor, a Fannie Mae DUS Lender, financed. The interest rate is in the mid 7’s and is fixed for the first 10 years on a 25 year schedule.

The borrower is eligible to refinance at the end of 10 years through Arbor’s streamlined refinance process. The borrower can also place a second mortgage on the property with similar terms anytime after 12 months from the closing date. To be eligible the value must stay at 80% or less and the combined debt service ratio at the higher of the first or second mortgage rate is above 1.25.

301 Grant St., Framingham, MA