Freddie Mac Standard Student Housing Loan
- 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
5-10 years (up to 30 years for fixed-rate loans if loan is not purchased for securitization)
Generally $5 to $100 million (larger and smaller loans will be considered)
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.
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 for land owned by a college or university may be permitted with prior approval
• Individual tenant lease by the apartment, bedroom, or by the bed
• Rent under a master lease may be permitted with prior approval
12-month lease is preferred, although a shorter lease (no less than nine months) will be considered
Parental guaranty is preferred
Non-recourse except for standard carve-out provisions
Available subject to requirements in the Loan Agreement and current Freddie Mac program and product requirements at the time of the supplemental loan request