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Commercial Real Estate Division

Commercial Real Estate - Fannie mae

Fannie Mae Student Housing Multifamily Loan Program Guidelines:

Eligible Properties:

  • Existing, stabilized properties that have a student tenant base and are not readily convertible to conventional multifamily housing.

  • Properties typically have undergraduate or graduate students comprising a minimum of 80% residency that were specifically constructed as student housing facilities, or built as conventional multifamily housing that function as dedicated student housing. 

  • Eligible properties typically are located at or near a college or university with a minimum of ten thousand students, the majority of which are full-time. Property should be located within a two mile radius of campus. 

  • Have twelve month leases with parental guarantees preferred.

  • Not be on university-owned land nor offer food service. 

Ineligible Properties:

  • Properties that don't meet the minimum requirements for the Dedicated Student Housing Loan program may be processed under the Fannie Mae Standard Multifamily program.

Loan Size:

  • $1,000,000 with no maximum. 

Maximum Loan-to-Value:

  • ​​75% LTV.

Maximum CLTV:

  • 100% is possible with Joint Venture

Eligible Locations:

  • All 50 states, Puerto Rico, U.S. Virgin Islands, and Guam.

Fixed Rate Term:

  • Up to 30 years

Amortization:

  • 30 years. 

Minimum DSCR:

  • 1.30

Prepayment Penalty:

  • The greater of 1% or yield maintenance.

Guarantee:

  • Non-recourse for most loans subject to standard carve-outs.

Assumable:

  • Yes, subject to lender approval.

Escrows:

  • Tax and insurance required on higher leveraged loans.

Third Party Reports:

  • Appraisal, Market Study, Phase I Environmental, Engineering Report and Seismic where applicable.  

Sponsor Requirements:

  • Strong operators with a proven track record in student housing.

 

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