Student Housing Loans
Dedicated Student Housing Mortgages
Commercial Loan Direct's Dedicated Student product provides attractive terms and competitive prices for the purchase or refinance of properties that, because of construction and location, specifically cater to a student tenant base and are not readily convertible to conventional multifamily housing.
- Loan Amount: Over $1,000,000
- Amortization: Up to 25 Years
- Longer amortization may be available for higher DSC and lower LTV
- Minimum DSC 1.35 for anything over 20% student tenancy for fixed rate 1.10 for adjustable rate
- Maximum LTV 75%
- Fixed Rate Yes
- Eligible Property: Specifically cater to a student tenant base. Not readily convertible to conventional multifamily housing. Must be greater than 80% student occupied. Requires 12-month leases and parental guarantees. Food services not permitted
- Enrollment Requirement: Greater than 20,000 students
- Occupancy Requirement: 90%
- Tax and Insurance Escrows. Monthly deposits required. May be waived if certain criteria are met
- Replacement Reserves Underwritten at a minimum $250 per unit per annum. Must be funded unless unusual mitigating circumstances exist
- Recourse: Non-recourse with standard exceptions for fraud and misrepresentation
- Commercial Space Eligible
- Required Reports:
Appraisal, Property Condition Assessment
and Phase I Environmental - Prepayment: Yield maintenance or defeasance
- Assumable: Yes
- Subordinate Financing - Not allowed
- Supplemental Loans; Eligible for secondary financing after 12 months
- Pricing: Tiered Pricing Matrix. More favorable terms available for
higher DSC and lower LTV. - Rate Lock: Standard 10-day rate lock period
- Application Deposit: $20,000. Covers all estimated underwriting costs (including processing fee)
- Processing Fee: $3,000 non-refundable
- Origination Fee: Minimum 1%
- Legal / Closing Fee; Counsel Fee to be determined at application
- Good Faith Deposit; 2% of loan amount
In its prequalifying review, Commercial Loan Direct will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.
Get a student housing loan quote today