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 | $750,000 minimum |
Term | 5 – 30 Years |
Amortization | Up to 30 years |
Minimum DSCR | 1.30x for Fixed Rate 1.05x for Variable Rate |
Maximum LTV | Up to 75% |
Rate Structure | Fixed and adjustable rate options available |
Eligible Properties |
Student Housing – Must be between 40% or greater student tenancy Dedicated Student Housing – Specifically catered to a student tenant base; not readily convertible to conventional multifamily housing; must be 80% or greater 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; property has to have operated for a least 1 full school year (i.e., August/September through April/May) |
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 | Nonrecourse 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 | 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 |
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