FREDDIE MAC®
Student Housing
Arbor’s Student Housing financing product provides attractive terms and competitive prices for the purchase or refinance of properties that, because of construction and location, specifically cater to a student tenant base and may or may not be readily convertible to conventional multifamily housing.
| Eligible Borrowers |
|
| Eligible Property Types |
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| Loan Amount | $5 million to $100 million (larger and smaller loans will be considered) |
| Loan Term | 5 to 10 years (up to 30 years for fixed-rate loans if loan is not purchased for securitization) |
| Maximum Amortization | 30 years |
| Financing Options | Acquisition or refinance |
| Ground Lease | Ground lease for land owned by a college or university may be permitted with prior approval |
| Lease Parameters |
|
| Lease Terms | 12-month lease is preferred, although a shorter lease (of nine months or more) will be considered |
| Lease Guaranty | Parental guaranty is preferred |
| Minimum DSCR | 1.30x / 1.35x / 1.40x / 1.45x (Refer to: Student Housing Loan (freddiemac.com) for grid) |
| Maximum LTV | 65% / 70% / 75% / 80% (Refer to: Student Housing Loan (freddiemac.com) for grid) |
| Tax & Insurance Escrows | Generally required |
| Replacement Reserve Deposit | Generally a minimum of $150 per bedroom or $300 per unit |
| Recourse Requirement | Nonrecourse except for standard carve-out provisions |
| Supplemental Loans | Available subject to requirements in the Loan Agreement and current Freddie Mac program and product requirements at the time of the supplemental loan request |
| Exclusions | Residence halls or other multiple occupancy rooms with a shared common bathroom and centralized food service areas or dining halls |
| Early Rate-Lock Options (For Fixed-Rate Loans) | Early rate-lock and Index Lock options available |
| Refinance Test | No Refinance Test is necessary if the loan has an amortizing debt coverage ratio (DCR) of 1.40x or greater and a loan-to-value (LTV) ratio of 60% or less |
| Application Deposit | Greater of $2,000 or 0.1% of loan amount |
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