FANNIE MAE® Student Housing

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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 DSC 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 and 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, Properly Condition Assessment and Phase I Environmental
Prepayment Yield Maintenance
Assumable Subject to approval and 1% fee
Subordinate Financing Not allowed
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
Arbor Commercial Mortgage | arbor.com | 800.ARBOR.10

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