Freddie Mac Student Housing MortgageSM
The Freddie Mac Student Housing MortgageSM product offers financing for the acquisition or refinancing of purpose-built student housing. The product is also available for traditional garden, mid-, or high-rise multifamily properties that are more than 50 percent occupied by students. We invite you to talk to one of our Freddie Mac Multifamily Seller/Servicers to find out why you can expect more from Freddie Mac on your next student housing deal.
Key Benefits
- Flexible terms including both 30-year amortization and the potential for full or partial interest only are available.
- Nine-month leases are permitted under the Student Housing Mortgage (12-month leases are preferred).
- Student housing properties located within close proximity to one or more schools that have a combined student body of 8,000 students or more are eligible for consideration.
- Properties located less than two miles from a college/university or on a public transportation route are eligible.
- Ground lease for college- or university-owned land may be permitted.
- Master leases with college/university may be permitted.
At a Glance
| Product Summary |
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| Loan Terms |
5-, 7-, and 10-year terms with balloon |
| Loan Amount |
$5-50 million |
| Eligible Borrowers |
Experienced owner/operator of student housing properties
Partnership (general or limited); corporation; trust, joint venture, limited liability company or individual |
| Financing Options |
Acquisition or refinance |
| Eligible Property Type |
- Purpose-built student housing properties*
- Stabilized garden, mid-rise and high-rise apartment properties that are greater than 50% occupied by student tenants
- Located in an area with a college/university that has 8,000 or more students. Properties located within close proximity to multiple schools that have a combined student body of 8,000 students or more will be considered.
- Properties located less than two miles from a college/university or on a public transportation route
|
| Ground Lease |
Ground lease for land owned by a college or university may be permitted with prior approval. |
| Lease Parameters |
Individual tenant leases by the apartment, bedroom, or by the bed Master lease may be permitted with prior approval. |
| Lease Terms |
12-month lease term is preferred, although a shorter lease term (no less than nine months) will be considered. |
| Lease Guaranty |
Parental guaranty is preferred but is not required. |
| Maximum Loan-to-Value |
80% |
| Minimum Debt Coverage Ratio |
Minimum of 1.25x, amortizing |
| Recourse |
Non-recourse except for standard carveout provisions |
| Supplemental Mortgages |
Supplemental mortgage on an existing Freddie Mac student housing first mortgage is allowed. |
| Exclusions |
Residence halls or other multiple occupancy rooms with a shared common bathroom and centralized food service areas or dining halls |
For links to our list of Freddie Mac Multifamily Seller/Servicers and to our Product Information page, visit http://www.FreddieMac.com/multifamily.
*Must have an identified bathroom for every two bedrooms. Each apartment made up of multiple dwelling units must have a separate full kitchen.
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