Stabilized Student Housing Loan Program
Fannie Mae and Freddie Mac
40%+ Leased to Undergraduate or Graduate Students
Refinance, Cash-Out and Purchase Loans
Nationwide
Nonrecourse
No upfront fees underwriting pricing and sizing loans; no application or 3rd party fees (such as appraisals) until borrower signs FHA-Hud, Fannie Mae or Freddie Mac terms sheet
4.5% to 5.5% fixed
$3.5 Million to $100+ Million
Term: 10 years
Amortization: 30 years
Cash-out 70% to 75% of appraised value @1.30 DSCR
Refinance 75% to 80% of appraised value @1.25 DSCR
Finance 75% to 80% of purchase price @1.25 DSCR
Borrower requirements:
(1) Must have been on title for 2+ years for similar sized student housing in last 3 years
(2) Liquidity must cover “cash to close” (combined all key principals)
(3) 660+ credit
(4) No bankruptcy, foreclosure or short sales in last 3 years
(5) Borrower: single asset LLC, Corporation or Partnership
Occupancy requirements: 90% consecutive occupancy for 90 days
Borrower may take surplus cash distributions from operating account anytime.
Debt service coverage minimum: 1.30x fixed rate/1.05x adjustable rate
Prepayment: Yield Maintenance with no lockout
Required 3rd party reports: MAI appraisal, physical needs assessment, environmental Phase I; Seismic may be required in zones 3 and 4
Required escrows: Tax, insurance, funded repair and replacement based on physical needs assessment; may be waived for less than 65% LTV with no deferred maintenance
Application fee: $15,000 for 3rd party reports, processing and underwriting costs
Legal: $8,000 – $12,000
Rate Lock after commitment; Early Rate Lock option available 1 week after application
Assumable
Nonrecourse
Ineligible: properties that offer food service and/or located on university-owned land (except for dedicated student housing property described below).
Dedicated student housing requirements (if student concentration 80%+)
a) Near campus with 10,000+ students
b) Within 2 miles of campus or on a public/university transportation line,
c) Have operated at least 1 full school year (August/September through April/May) and
d) In 2nd full year of operations
e) 80%+ 12 months leases with parental guaranties or leased by students with financial ability to pay required rent through employment or other documented financial means.
Funding: 45-60 days from application to commitment, dependent on 3rd party report timing and borrower’s submission of due diligence
To submit your online loan request, please click the blue GET STARTED Link for your PRE APPROVAL Term Sheet within 48 business hours. No tax returns, income verification or upfront fees, credit cards, Social Security Numbers or credit checks required for PRE-APPROVAL.
