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 |
V020722