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Stabilized Student Housing Loans

40%+ Leased to Undergraduate or Graduate Students

Refinance, Cash-Out and Purchase Loans

Nationwide

Fannie Mae and Freddie Mac

Nonrecourse

3.25% to 4.25% fixed 

$3.5 Million to $100+ Million

Term: 10 years

Amortization: 30 years

Finance 75% of purchase price

Cash-out or refinance up to 75% of appraised value

Borrower requirements:

(1) Must have been on title for 2+ years for similar sized student housing in last 3 years 

(2) Net worth must equal loan amount (combined all key principals)

(3) Liquidity must equal 10% of loan amount (combined all key principals)

(4) 660+ credit

(5) No bankruptcy, foreclosure or short sales in last 3 years

(6) 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 seismic 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 get started, please click the blue Student Housing Loan Link for your FREE PRE APPROVAL LOI within 48 business hours. With a few clicks of your mouse it TAKES LESS THAN 6 MINUTES to submit your online loan request. No upfront fees, credit cards, Social Security Numbers or credit checks are required.

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