| Program
Overview |
These loans are specifically designed to offer
affordable permanent financing for dedicated student housing. |
| Eligible Properties |
- Multifamily dwellings containing 5 or more units.
- Must be dedicated student housing with a resident
student concentration of over 80%.
- Property
must be located within two miles of the campus or on a university
sanctioned bus line.
- 12 month lease terms are required with either a
parental guarantee personally guaranteed by gainfully employed
students.
- University enrollment must be at least 10,000
students with the majority being full-time.
- Properties
must have sufficient security.
- Food service is not allowed.
- "By the bed" income calculation is permitted as
long as it is comparable to similar student properties or if their
is successful history of such accounting.
|
| Loan Term |
Maximum of 25 years |
| Loan Amortization |
Maximum of 25 years |
| Loan Amounts |
Minimum of
$1,000,000 with no maximum |
| Maximum Loan-to-Value |
75% |
| Minimum Debt Service Coverage |
130% |
| Borrowing Entity |
Single asset and single purpose
entity required |
| Lifetime Cap |
200 to 600 basis
points above/below initial interest rate |
| Origination Fee |
Typically 1%. May
be negotiated on larger transactions. |
| Secondary Financing |
Fannie Mae supplemental
loans available to 80% CLTV after 12 months. |
| Interest Rates |
Competitive based
upon LTV and DSCR. |
| Recourse |
Non-Recourse except
for standard lender carve-outs. |
| Prepayment Provisions |
Yield Maintenance throughout majority of loan term
until the last 6 months, with the
following 3 months at 1% and final 3 months open to prepayment at par. |
| Reserves |
Tax and Insurance Escrows are required.
Replacement Reserves are typically
required based upon the engineer's report. They may be waived at lower
LTVs. Various funding options are available for Replacement
Reserves. |
| Good Faith Deposit |
A deposit to cover third party costs and expenses is
required at Application with any excess credited at closing. |
| Rate Lock Deposit |
2% deposited prior to Rate Lock and credited at
closing. Early Rate locks are available. |
| Assumptions |
Permitted with
lender's approval with a 1% transfer fee plus applicable processing fee. |
| Closing |
Typically within
5 days of rate lock. |
| Lending Territory |
Almost Nationwide -
See Specific
State coverage |
