Freddie Mac Standard Student Housing Loan

Freddie Mac Standard Student Housing Loan2018-05-27T02:15:45+00:00

Freddie Mac Standard Student Housing Loan

Key Benefits

  • Flexible loan terms including both 30-year amortization and the potential for full-term interest-only 
  • May consider shorter student lease terms and combined student body of multiple schools to meet eligibility requirements 

Loan Terms 
5-10 years (up to 30 years for fixed-rate loans if loan is not purchased for securitization) 

Loan Amount 
Generally $5 to $100 million (larger and smaller loans will be considered) 

Maximum Amortization 
30 years 

Eligible Borrowers/Borrowing Entity 

  • Borrower may generally be a limited partnership, corporation, limited liability  company, or a tenancy-in-common (TIC) with 10 or fewer tenants in common. 
  • General partnerships, limited liability partnerships, REITs and certain trusts may also be acceptable in limited circumstances, subject to additional requirements. 
  • Borrower must generally be a Single Purpose Entity (SPE) (see Section 6.13 of the Loan Agreement for basic SPE requirements); however, on loans less than $5 million, upon Borrower’s request, a Borrower other than a TIC may be a Single Asset Entity (SAE) instead of an SPE. 
  • If the borrower is structured as a Tenancy In Common (TIC), each Tenant in Common must be an SPE. 

Financing Options 
Acquisition or refinance 

Eligible Property Types 

  •  Purpose-built student housing properties; must have a minimum of one bathroomfor every two bedrooms, and each apartment must have a separate full kitchen.
  • Stabilized garden, mid-rise, and high-rise apartment properties that are greater than 50 percent occupied by student tenants 
  • Supporting college/university has 8,000 or more students; student housing properties located within close proximity to multiple schools that have a combined student body of 8,000 students or more will be considered 
  • Property is located less than two miles from 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 lease by the apartment, bedroom, or by the bed 
• Rent under a master lease may be permitted with prior approval 

Lease Terms 
12-month lease is preferred, although a shorter lease (no less than nine months) will be considered 

Lease Guaranty 
Parental guaranty is preferred 

Recourse Requirements 
Non-recourse 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 

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