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FNMA DUS® Stabilized Student Housing Loans 40%+ Leased to Undergraduate or Graduate Students

Refinance, Cash-Out and Purchase Loans

Nationwide

Non-recourse

3.5 to 5.5% (fixed and adjustable rates)

$3,000,000 to $100 Million+

Term: 5-30 years

Amortization: 30 years

Loan to Value Maximum: 75% of appraised value

Coverage Minimum: 1.30x fixed rate/1.05x adjustable rate

Borrower: Single asset LLC, Corporation or other business entity required

Prepayment: Yield Maintenance with no lockout

3rd Party Reports: MAI appraisal, physical needs assessment,  environmental Phase I required; Seismic may be required Zones 3 and 4

Accrual: 30/360 and Actual/360

Non-recourse with standard carve-outs for “bad acts” such as fraud and bankruptcy.

Escrows: Tax, insurance, funded repair and replacement escrow required based on physical needs assessment; Loans less than 65% of value with no deferred maintenance, funding of repair & replacement reserve can be waived lender discretion

Application Fee: $15,000 to cover third party reports and processing/underwriting costs

Legal Fees: $8,000 – $12,000, varying on deal characteristics 

Timing: 45-60 days from application to commitment, dependent on 3rd party report timing and borrower’s submission of due diligence

Rate Lock after commitment issued; Early Rate Lock option available 1 week after application

Assumable: with lender approval of replacement borrower; Fees: 1% assumption fee to Fannie Mae including $3,000 processing fee to cover lender underwriting expenses

Ineligible: property that offers food service and/or is located on university-owned land (except for Dedicated Student Housing Property described below).

Dedicated Student Housing Specific Requirements*:
a) Near campus with 10,000+ students,
b) Within 2 miles of campus or on public/university transportation line,
c) Have operated at least 1 full school year (i.e. 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).

*Not required for student concentration below 80%

Let’s Move your project forward…

Please click blue FNMA  Student Housing Loan Link for FREE PRE APPROVAL LOI within 24 business hours. With a few clicks of your mouse it TAKES LESS THAN 3 MINUTES TO GET STARTED NOW. No upfront fees, credit cards, Social Security Numbers or credit checks required.

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