Commercial Real Estate Division
Commercial Real Estate - Fannie mae
Fannie Mae Student Housing Multifamily Loan Program Guidelines:
Eligible Properties:
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Existing, stabilized properties that have a student tenant base and are not readily convertible to conventional multifamily housing.
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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.
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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.
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Have twelve month leases with parental guarantees preferred.
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Not be on university-owned land nor offer food service.
Ineligible Properties:
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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:
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$1,000,000 with no maximum.
Maximum Loan-to-Value:
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75% LTV.
Maximum CLTV:
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100% is possible with Joint Venture
Eligible Locations:
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All 50 states, Puerto Rico, U.S. Virgin Islands, and Guam.
Fixed Rate Term:
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Up to 30 years
Amortization:
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30 years.
Minimum DSCR:
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1.30
Prepayment Penalty:
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The greater of 1% or yield maintenance.
Guarantee:
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Non-recourse for most loans subject to standard carve-outs.
Assumable:
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Yes, subject to lender approval.
Escrows:
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Tax and insurance required on higher leveraged loans.
Third Party Reports:
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Appraisal, Market Study, Phase I Environmental, Engineering Report and Seismic where applicable.
Sponsor Requirements:
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Strong operators with a proven track record in student housing.