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BK-0910597
Fannie Mae has developed a special product for the financing of dedicated student housing properties located near universities with 10,000 or more students. This product takes into account the unique characteristics associated with student housing by modifying typical multifamily underwriting standards to maximize loan proceeds. Because this is a Fannie Mae product offered by Venture, the borrower is able to take advantage of favorable DUS pricing, flexible terms, supplemental mortgages, and the premium customer service our customers have come to expect.
(For a Printable PDF of this program, please click here)
Eligibility Dedicated student housing 80% or more of units rented to students (properties with food service are not eligible)
Loan Amounts $2 million minimum. No maximum
Term/Amortization 5, 7, 10 year term. 25 year amortization (standard). 30 year amortization (qualifying properties)
Interest Rate Fixed or Adjustable
Debt service coverage ratio 1.30x minimum
Loan to value 75% maximum
Personal recourse Non-recourse with standard "Carve-Outs" and Key Principals obligations
Prepayment 1 year lockout with 1% minimum for the loan term (ARM); yield maintenance with 1% minimum or defeasance (fixed)
Origination Fee 1% / $20,000 minimum
Commitment Fee 2% (refundable)
Third Party Fees Includes legal, appraisal, engineering, and environmental reports. Seismic reports and survey may also be required
Minimum Occupancy Requirement 90% sustained for 90 consecutive days (85% acceptable for special circumstances)
Replacement reserve impounds Required - not less than $200/unit (waiver considered for special circumstances)
Taxes and Insurance Impounds Required (may be waived for low leverage transactions)
Assumability Assumable with lender approval and a 1% fee
Supplemental Mortgages Available after 1 year (up to two available, plus one more upon sale)
Venture Placement Fee 1% to 2% dependent on property