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||$1,000,000 minimum.|
|Amortization||Up to 30 years.|
|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.|
|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||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.|