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.
| Fannie Mae (FNMA) Student Housing Multifamily Mortgages | |
| Term | 5-30 Years |
| Amortization | Up to 30 Years |
| Max LTV | 75% |
| Min DSCR DSCR Calculator | 1.30x |
| Minimum Underwriting Vacancy/ Collection Loss | 10% |
| Rate Lock | 30 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. |
| Recourse | Recourse 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. |
| Assumption | Mortgages are typically assumable. |
| Prepayment Options | Yield maintenance and other graduated prepayment options are available. |
| Supplemental Financing | Supplemental Loans are available. |
| Additional Considerations |
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