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					                                                                                                                              TERM SHEET
FHA                                                                          Required Reports
223(a)(7) Arbor provides FHA insured long term, fixed-rate financing         Generally not required
for refinance, acquisition or moderate renovation of multifamily projects
nationwide.                                                                  Prepayment
                                                                             Negotiable. Generally three year lockout with
                                                                             declining percentage of principal thereafter up to
                                                                             10 years (7-6-5-4-3-2-1).
Loan Term / Amortization
Remaining term of the existing loan plus up to 12                            Assumable
years (subject to HUD approval). Term cannot exceed                          Subject to Arbor and HUD approval and payment of
the original term of the existing loan.                                      assumption fee

Amortization                                                                 Good Faith Deposit
Up to 35 Years (Fully Amortizing)                                            Negotiable

Maximum Loan Amount                                                          Expense Escrow
• 1.11 For Profit Owners (1.05 Non-Profit Owners)                            Negotiable
• Original principal balance of loan
• 100% of refinance cost                                                     Origination Fee
• No cash-out allowed                                                        Negotiable

Interest Rate                                                                HUD Application Fee
Low, fixed-rate set via Ginnie Mae MBS                                       0.3% of the new loan amount paid to HUD with Firm
                                                                             Commitment Application. HUD can refund 50% of
Eligible Property                                                            Application Fee post-closing.
Multifamily projects or healthcare facilities
currently insured under Sections 220, 221(d),                                HUD Inspection Fee
223(f), 232 and 241                                                          Not applicable

Eligible Borrower                                                            Legal / Closing Fee
Single Asset Entity (for profit or non-profit)                               Borrower pays Arbor’s Counsel Fee and
                                                                             miscellaneous closing costs
Occupancy Requirement
Underwritten up to 95% occupancy                                             Repairs
                                                                             Repairs approved by HUD can be funded by
Cash Out                                                                     mortgage proceeds with 10% Completion Assurance
Not allowed                                                                  (cash or letter of credit) required from owner.

Loan Amount                                                                  Davis Bacon
No cash out. New loan amount is the lowest of:                               Not applicable to this program
a. Original principal balance of existing loan
b. 100% of the costs to refinance                                            HUD Mortgage Insurance Premium (MIP)
(current principal balance plus transaction costs,                           HUD sets the cost of the FHA Insurance. The initial
repairs and deposits to replacement reserves)                                MIP is due to HUD at closing, and the MIP is
c. Minimum debt service coverage of 1.11                                     escrowed monthly thereafter.
(1.05 for non-profit owners)
                                                                             Processing Time
Tax and Insurance Escrows                                                    Arbor will submit the Firm Commitment Application to
Monthly deposits required                                                    HUD 15 to 30 days from receipt of signed
                                                                             Engagement Letter.

            Arbor Commercial Mortgage, LLC             •   Arbor Realty Trust, Inc.   •   800.ARBOR.10   •        5/22/08

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