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 | 1.30 |
| 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. |
| 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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