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GENERAL: 800.ARBOR.10

FANNIE MAE DUS®

Student Housing

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 $1,000,000 minimum.
Amortization Up to 30 years.
Minimum DSCR 1.30
Maximum LTV 75%. If cash-out, 70%.
Rate Structure Fixed and adjustable rate options available.
Eligible Properties Dedicated Student Housing – Specifically cater to a student tenant base. Not readily convertible to conventional multifamily housing. Must be greater than 80% student occupied. Requires 12-month leases and parental guarantees. Food services not permitted. 20% of tenants are allowed to have lease terms of less than 12 months.
Student Housing – Must be between 40% – 80% student tenancy.
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.
Commercial Space Eligible
Student Population Requirement Minimum 10,000 students for dedicated student housing.
Required Reports Appraisal, Property Condition Assessment, Phase I Environmental.
Prepayment Yield Maintenance.
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 Standard 10 day rate lock period. Early/extended rate lock options available.
Application Deposit $12,500. Covers all estimated underwriting costs (including processing fee).
Processing Fee $3,000 non-refundable.
Origination Fee Minimum 1%. Par pricing available.
Legal/Closing Fee Arbor’s Counsel Fee to be determined at application.
Good Faith Deposit 2% of loan amount, refundable at closing.

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