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Apartment Loan Quick Links |
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| Multifamily Loan for Life™ |
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| Available for student housing
properties through the Fannie Mae Student Housing
program. Crefcoa's
Multifamily Loan for Life eliminates interest rate risk
preserving the integrity of your student housing investment. |
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Fixed rates up to 30 years
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No balloon payments
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No interest rate resets / adjustments
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Non-recourse
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| Why Choose Crefcoa |
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| Crefcoa has the knowledge,
expertise and strategic relationships required to
provide you with the most competitive rates and terms
for your student housing multifamily property. |
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Multiple program options
- Competitive rates and terms
- Knowledge and expertise
- Certainty of execution
- Convenient electronic loan process
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Apartment Loans for Student
Housing Properties
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| Crefcoa
provides apartment loans for dedicated student housing
properties and properties with a student tenant
concentration through the following programs:
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Fannie Mae Multifamily Student Housing Loan Program Overview
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Fannie Mae provides
customized apartment loans for student housing
properties that address the special needs financing of
the student housing market through its
Dedicated Student Housing Loan program. Multifamily
loans are
available for properties that are specifically built for
student housing with a minimum of 80% of the units
leased to undergraduate or graduate students. For
properties with a student tenant concentration less than
80%, financing is available through the
DUS Standard Multifamily Loan program.
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$1 million minimum loan size
- Up to 75% LTV
- Minimum 1.30 DSCR
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Up to 30 year fixed rate terms
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Customized financing terms
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Non-recourse with standard carve-outs
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Fannie Mae Student Housing Multifamily Loan Program Guidelines
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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 10,000
students, the majority of which are full-time.
Property should be located within a two mile radius
of campus.
- Have 12 month leases with parental guaranties
preferred.
- Not be on university-owned land nor offer food
service.
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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 DUS program. |
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Eligible Locations |
All 50 states, Puerto Rico, U.S. Virgin
Islands, Guam. |
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Loan Size |
$1,000,000 with no maximum. |
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Fixed Rate Term |
Up to 30 years. |
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Amortization |
30 years. |
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Minimum DSCR |
1.30. |
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Maximum LTV |
75%. |
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Interest Accrual |
Actual/360 or 30/360. |
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Prepayment Penalty |
The greater of 1% or yield maintenance. |
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Guarantee |
Non-recourse for most loans subject to
standard carve-outs. |
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Assumable |
Yes, subject to lender approval. |
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Supplemental Loan |
Available 12 months from date of closing
of first loan. |
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Impounds |
Tax and insurance required. |
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Replacement Reserves |
Required. |
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Subordinate Debt |
Not permitted. |
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Rate Lock |
At commitment. Extended rate lock up to
six months available. |
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Borrower |
Single asset single purpose bankruptcy
remote U.S. entity. |
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Sponsor Requirements |
Strong operators with a proven track
record in student housing. |
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Underwritten NOI |
Fannie requires a minimum expense for
specific expense line items, e.g.
maintenance and repairs, management,
payroll, general and administrative and
replacement reserves. |
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What You Need to Know
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Program descriptions,
highlights and underwriting guidelines are helpful when
considering if an apartment loan program is right for
you and your property. However, they don't always tell
the whole story. Below is what you need to know about
the Fannie Mae Dedicated Student Housing Multifamily
Loan program that program
guidelines and highlights don't tell you.
- 12 month leases required with parental guarantee
or credit worthy students that are employed.
- Properties may be leased on a per-bed or
per-unit basis.
- Professional third party management preferred
for operators with less experience -- less than two
dedicated student housing properties.
- Properties that don't have a student tenant
concentration, but are located in a market where the
economic impact from a college or university is
dominant are required to be underwritten based on
Special Category Risk Underwriting.
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