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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.
The Student Housing team makes great use of Fannie Mae products and executions. In the past, we have done Student Housing Credit Facilities, as well as the Green financing product, which is another great option given how water and energy savings directly benefit the Borrower’s bottom line. Our Streamlined Rate Lock execution is also delegated for Student Housing loans at all Tier levels.
The same customizable features of Conventional Mortgage loans are also available on Student Housing Mortgage loans. Your National Account Deal Team will work with you to come up with the best solution to meet your client’s financing needs.
Every Fannie Mae loan receives customized pricing, and Student Housing loans are no different. Our pricing is always competitive and adjusts with the changing market conditions. Please reach out to your National Account Deal Team to get additional pricing guidance.
Green financing is available. We are highly interested and motivated in assisting and incentivizing Borrowers who execute environmentally-responsible practices at their properties.
Student Housing mortgage loans are subject to the volume cap mandated by FHFA. However, FHFA will exclude the pro rata portion of the loan amount based on the percentage of units that are affordable at 80 percent of AMI or below.
