Student Multifamily Building

Fannie Mae (FNMA) Student Housing Multifamily Mortgages


Fannie Mae provides financing for student housing properties, which is defined as a conventional multifamily property where 20% or more of the units are leased to undergraduate and/or graduate students, or a property that is specifically built or leased for student housing. This program provides flexible financing, competitive pricing, and fast execution time.


Overview
Term5-30 Years
AmortizationUp to 30 Years
Max LTV75%
Min DSCR DSCR Calculator1.30x
Minimum Underwriting Vacancy/ Collection Loss10%
Rate Lock30 to 90-day commitments. An Early Rate Lock feature is available allowing the borrower to lock a rate 45 to 180 days in advance of closing.
RecourseRecourse Non-recourse. Standard carve-outs for “bad acts” such as fraud and bankruptcy are required.
Escrows Standard DUS escrow requirements for taxes and insurance. Replacement Reserves are required at a minimum of $250 per unit per annum, and must be fully funded.
Third-Party Reports Standard third-party reports including Appraisal, Phase I Environmental Assessment and a Physical Needs Assessment are required.
Interest Rate Fixed and variable rate options are available.
AssumptionMortgages are typically assumable.
Prepayment Options Yield maintenance and other graduated prepayment options are available.
Supplemental Financing Supplemental Loans are available.
Additional Considerations
  1. Be near a campus with 10,000 student enrollment (50% full time).
  2. Be within 2 miles of campus or on a college/ university sanctioned public transportation line.
  3. Be into its 2nd full year of operations.
  4. Have 12 month leases with parental guaranties.
  5. Not be on university-owned land nor offer food service

FNMA Multifamily Mortgages