Fannie Mae finances Student Housing and Dedicated Student Housing properties. The differences are:
- Fannie Mae Multifamily provides financing options for Student Housing properties where greater than 40 percent of the units are leased to undergraduate or graduate students.
- Dedicated Student Housing properties (i.e., 80 percent or more units are leased to undergraduate or graduate students) require additional underwriting documentation. In addition, a Dedicated Student Housing property must:
- be located near a campus with at least 10,000 student enrollment;
- be within two miles of campus boundary line or on a college/university-owned transportation line;
- have operated for at least one full school year (i.e., August/September through April/May), and be in its second full year of operations; and
- have at least 80 percent of all leases have 12-month lease terms with parental guaranties, or be leased by students that have the financial ability to pay the required rent, whether through employment or other documented financial means.