FANNIE MAE DUS®
Arbor’s DUS Student Housing product provides attractive terms and competitive prices for the purchase or refinance of properties that, because of construction and location, specifically cater to a student tenant base that may or may not be readily convertible to conventional multifamily housing.
|Loan Amount||$750,000 minimum.|
|Term||5 – 30 Years|
|Amortization||Up to 30 years.|
|Maximum LTV||Up to 75%|
|Rate Structure||Fixed and adjustable rate options available.|
|Eligible Properties||Student Housing – Must be between 40% – 80% student tenancy.
Dedicated Student Housing – Specifically catered to a student tenant base. Not readily convertible to conventional multifamily housing. Must be greater than 80% student occupied. 20% of tenants are allowed to have lease terms of less than 12 months. Requires 12-month leases and parental guarantees. Food services not permitted. The property must be within 2 miles of campus boundary line or on a college/university-owned transportation line.
|Occupancy Requirement||Minimum 90%.|
|Tax & Insurance Escrows||Monthly deposits required. May be waived if certain criteria are met.|
|Replacement Reserves||Underwritten at a minimum $250 per unit per annum. Must be funded.|
|Recourse||Non-recourse with standard exceptions for fraud and misrepresentation.|
|Student Population Requirement||Minimum 10,000 students for dedicated student housing.|
|Required Reports||Appraisal, Property Condition Assessment, Phase I Environmental.|
|Assumable||Subject to approval and 1% fee.|
|Subordinate Financing||Not allowed.|
|Supplemental Loans||Eligible for secondary financing after 12 months.|
|Pricing||Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.|
|Rate Lock||30- to 180- day commitments. Early/extended rate lock options available.|
|Application Deposit||$20,500. Covers estimated processing and legal fees.|
|Origination Fee||Minimum 1%. Par pricing available.|
|Good Faith Deposit||2% of loan amount, refundable at closing.|