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Fannie Mae Dedicated Student Housing Apartment Loans

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Multifamily Loan for Lifeā„¢
Multifamily Loan for Life
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.
  • Fixed rates up to 30 years
  • No balloon payments
  • No interest rate resets / adjustments
  • Non-recourse
Why Choose Crefcoa
Why Choose
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.
  • Multiple program options
  • Competitive rates and terms
  • Knowledge and expertise
  • Certainty of execution
  • Convenient electronic loan process

Apartment Loans for Student Housing Properties

Crefcoa provides apartment loans for dedicated student housing properties and properties with a student tenant concentration through the following programs:

Fannie Mae Multifamily Student Housing Loan Program Overview

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.
  • $1 million minimum loan size
  • Up to 75% LTV
  • Minimum 1.30 DSCR
  • Up to 30 year fixed rate terms
  • Customized financing terms
  • Non-recourse with standard carve-outs

Fannie Mae Student Housing Multifamily Loan Program Guidelines

Eligible Properties
  • Existing, stabilized properties that have a student tenant concentration greater than 40 percent of the units that are leased to undergraduate or graduate students.
  • Properties with an undergraduate or graduate student tenant concentration greater than 80% must be underwritten through Fannie Mae's Dedicated Student Housing program.
  • The Dedicated Student Housing Program requires eligible properties to be located at or near a college or university with a minimum of 10,000 students, the majority of which are full-time. For properties with less than 80% student tenant concentration there is flexibility with the student enrollment requirement.
  • At least 80 percent of all leases have 12-month lease terms with parental guaranties, or be leased by students that have the financial ability to pay the required rent, whether through employment or other documented financial means.
  • Stabilized operating history for at least one full school year (i.e., August/September through April/May), and be in its second full year of operations.
  • 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 DUS program.
Eligible Locations All 50 states, Puerto Rico, U.S. Virgin Islands, Guam.
Loan Size $1,000,000 with no maximum.
Fixed Rate Term Up to 30 years.
Amortization 30 years.
Minimum DSCR 1.30.
Maximum LTV 75%.
Interest Accrual Actual/360 or 30/360.
Prepayment Penalty Flexible prepayment options available including yield maintenance and declining prepayment premium.
Guarantee Non-recourse for most loans subject to standard carve-outs.
Assumable Yes, subject to lender approval.
Supplemental Loan Available 12 months from date of closing of first loan.
Impounds Tax and insurance required.
Replacement Reserves Required.
Subordinate Debt Not permitted.
Rate Lock At commitment. Extended rate lock up to six months available.
Borrower Single asset single purpose bankruptcy remote U.S. entity.
Sponsor Requirements Strong operators with a proven track record in student housing.
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

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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