FANNIE MAE DUS STUDENT HOUSING LOANS

Non-recourse, fixed and adjustable rate financing in DFW for the acquisition or refinance of stabilized student housing properties

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Apartment Loan Amount

Minimum $3,000,000

Fannie Mae DUS® Student Housing Loans in Texas

Description
Non-recourse, fixed and adjustable rate financing for the acquisition or refinance of stabilized Student Housing properties where greater than 40% of the units are leased to undergraduate or graduate students.

Loan Amount
Minimum $3,000,000

Loan Term
5-30 years

Amortization
Up to 30 years

Loan to Value Maximum
Maximum 75% of appraised value

Coverage Minimum
1.30x fixed rate/1.05x adjustable rate

Borrower
Domestic, single asset borrowing entity is required

Interest Rate
Fixed and variable rates, varying with LTV and DSC ratios

Prepayment
Yield Maintenance with no lockout

Third Party Reports
MAI Appraisal, Physical Needs Assessment, and Environmental Phase I Reports are required; Seismic Reports may be required for properties in Seismic Zones 3 and 4

Accrual
30/360 and Actual/360

Recourse
Non-recourse execution with standard carve-outs required for “bad acts” such as fraud and bankruptcy

Escrows
Tax and Insurance escrow are required; Funded Repair and Replacement escrow is required, based on Physical needs assessment; For loans at less than 65% of value with no deferred maintenance, funding of repair and replacement reserve can be waived at Lender’s discretion

Application Fee
$15,000 to cover third party reports and processing/underwriting costs

Legal Fees
$8,000 – $12,000, varying on characteristics of the deal

Timing
45-60 days from application to commitment, dependent on 3rd party report timing and borrower’s submission of due diligence

Rate Lock
Typically, lock occurs after commitment is issued; Early Rate Lock option is available, allowing rate lock within 1 week after application

Assumability
Loan is typically assumable, subject to lender approval of proposed replacement borrower; Fees include one percent assumption fee, part of which is paid to Fannie Mae, and a $3,000 processing fee to cover
lender’s underwriting expenses

Ineligible Property Characteristics
A property that offers food service and/or is located on university-owned land (except for a Dedicated Student Housing Property as described below).

Requirements
Dedicated Student Housing Specific Requirements*:
a) Near a campus with at least 10,000 students,
b) Within 2 miles of campus or on public/university transportation line,
c) have operated for at least 1 full school year (i.e. August/September through April/May), and
d) be in its 2nd full year of operations
e) 80% of all lease terms must be a minimum of 12 months 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).

*Not required for student concentration below 80%

For current Fannie Mae apartment loan mortgage rates and custom quotes, contact our multifamily lenders in Dallas