Student Housing Loans

stabilized student housing loan program

Fannie Mae and Freddie Mac

* 40%+ Leased to Undergraduates or Graduate Students
* Purchase, Refinance or Cash-Out
* Lending Territory - Nationwide

Loan Amount:         $1 million - $100 million
LTV - Purchase:       75% - 80% @ 1.25 DSCR
         Refinance:      75% - 80% of Appraised value @ 1.25 DSCR
         Cash-Out:       70% - 80% of Appraised value @ 1.30 DSCR
Term:                       10 years
Amortization:        30 years
Rate:                        7.50% to 9.50% Fixed
Recourse:               Non-Recourse
Fees:                        No upfront fees underwriter pricing and sizing loans; no application or 3rd party fees (such as appraisals) until borrower signs FHA-HUD, Fannie Mae or Freddie Mac term sheet

Borrower Requirements:

 Must have been on title for 2+ years for similar sized student housing in the last 3 years.
Liquidity must cover "cash to close" (combined all key principals)
660+ Credit Score
No bankruptcy, foreclosure or short sales during the past 3 years
Borrower - Single Asset LLC

Occupancy Requirements

Occupancy:           90% consecutive occupancy for the past 90 days
Debt Coverage:     1.30 fixed rate
                                  1.05 adjustable rate
Prepayment:         Yield Maintenance with no lockout
3rd Party Reports: MAI appraisal, physical needs assessment,                                                       environmental Phase I: Seismic may be required in                                         zones 3 and 4
Escrows:    Taxes and Insurance funded repair and replacement based                           on physical needs assessment; may be waived if 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:            Rate lock fter commitment; Early Rate Lock Option                                          available 1 week after application
Assumable:         YES
Recourse:               Non-Recourse
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 schoolo year (August / September through April / May and
d) In 2nd full year of operations
e) 80%+ 12 months leases with parental guarantees 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.