| Description |
Non-Recourse, fixed and adjustable rate financing for the acquisition or refinance of stabilized Student Housing (20% to 80% student concentration) and Dedicated Student Housing properties (greater than 80% student concentration). |
| Loan Amount |
Minimum $3,000,000. |
| Loan Terms |
5, 7, 10 or 15 year balloon; 20, 25 or 30 year fully amortizing. 25 or 30 years; Interest Only may be available based on leverage and loan term. |
| Loan-To-Value Maximum |
Maximum 75% of appraisal value, or, if a property has been purchased within the past 12 months, 75% of lower of appraisal or purchase price (and up to 3% of closing costs) plus value added renovation. |
| Coverage Minimum |
1.30x fixed rate / 1.05x adjustable rate (based on loan coupon plus 3%). |
| Borrower |
Domestic single asset borrowing entity is required. |
| Interest Rate |
Risk-based "Tier" pricing, varying with LTV and DSC ratios. |
| PrePayment |
Yield Maintenance with no lockout, Defeasance or fixed step-down prepayment schedules. |
| Third Party Reports |
Tax and Insurance escrow are required. Funded Repair and Replacement escrow is required, based on Physical needs assessment. For loans at less than 65% of value with no deferred maintenance, funding of repair and replacement reserve can be waived at lenders discretion. |
| Application Fee |
$15,000 to cover third party reports and processing/underwriting costs. |
| Origination Fee |
Fannie Mae requires a minimum origination fee equal to one percent of loan amount for loans of $9 Million or less. Minimum fees decrease with increasing loan size. Origination Fee can be charged "outside" of the interest rate as a separate fee, or it can be built into the rate. |
| Legal Fees |
$8,000 - $12,000, varying on the characteristics of the deal. |
| Timing |
45-60 days from application to commitment, dependent on 3rd party report timing and borrower's submission of due diligence. |
| Rate Lock |
Typically, lock occurs after commitment is issued; Early Rate Lock option is available, allowing rate lock within 3-4 weeks of application. |
| Assumability |
Loan is assumable, subject to lender approval of proposed replacement borrower. Fees include one percent assumption fee, part of which is paid to Fannie Mae, and a $3,000 processing fee to cover lender's underwriting expenses. |
| Ineligible Property Characteristics |
A property that offers food service and/or a property on college/university owned land. |
| Requirements |
Dedicated Student Housing Specific Requirements*: Pre-Review requirement with Fannie Mae near a campus with at least 20,000 students within 2 miles of campus or on public/university transportation line Parental lease guarantees or financially qualified students required Lease terms must be a minimum of 12 months. |
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