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Fannie Mae Student Housing

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The Fannie Mae Student Housing program is for existing, stabilized properties that have strong operators where more than 40% of the units are leased to undergraduate or graduate students. Properties that are rented on a per unit or per bed basis are eligible. There are fixed and variable rate options available, and the maximum LTV is 75%.

Term Sheet for Fannie Mae Student Housing


Term 5-30 years.
Amortization Up to 30 years.
Interest Rate Fixed- and variable-rate options available.
Maximum LTV 75%.
Minimum DSCR

1.30x for fixed-rate.

1.05x for variable-rate, subject to a fixed-rate test.

Property Considerations Cannot be located on university-owned land (except for a Dedicated Student Housing Property as described below).
Supplemental Financing Supplemental loans are available.
Prepayment Availability Flexible prepayment options are available. Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and declining prepayment premium for variable-rate loans.
Rate Lock 30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
Accrual 30/360 and Actual/360.
Recourse Non-recourse execution with standard carve-outs required for "bad acts" such as fraud and bankruptcy.
Escrows Replacement reserve, tax, and insurance escrows are typically required.
Third-Party Reports Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment.
Assumption Loans are typically assumable, subject to review and approval of the new borrower's financial capacity and experience.
Dedicated Student Housing Properties

Decided Student Housing Properties (i.e., 80% or more units leased to undergraduate or graduate students) require additional underwriting documentation. In addition, a Dedicated Student Housing Property must:

  • be near a campus with at least 10,000 student enrollment (greater than 50% full time); 
  • be within 2 miles of campus boundary line or on a college/university-owned transportation line;
  • have operated for at least 1 full school year (i.e., August/September through April/May), and be in its 2nd full year of operations; and
  • at least 80% of all leases have 12 month leases terms with parental guaranties or be leased by students having the financial ability to pay for the required rent (whether through employment or other documented financial means).

A Dedicated Student Housing Property may be located on university-owned land if the key prinicipal has had a minimum of 5 years of dedicated student housing experience, and operates at least one other Dedicated Student Housing Property located on college- or university-owned land.

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