Student Housing
| Description | Non-recourse, fixed and adjustable rate financing for the acquisition or refinance of stabilized Student Housing (20% to 80% concentration) and Dedicated Student Housing properties (greater than 80% student concentration) |
|---|---|
| Loan Amount | Minimum $3 Million |
| Loan Terms | 5, 7, 10 or 15 year balloons; 20, 25 or 30 year fully amortizing |
| Amortization | 25 or 30 years; Interest Only may be available based on leverage and loan term |
| Loan to Value Maximum | Maximum 75% of appraised value, or, if property has been purchased within the past 12 months, 75% of lower of appraisal or purchase price (and up to 3% of closing costs) plus value added renovation |
| Coverage Minimum | 1.30x fixed rate / 1.05x adjustable rate (based on loan coupon plus 3%) |
| Borrower | Domestic single asset borrowing entity is required |
| Interest Rate | Risk-based “Tier” pricing, 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 2 and 4 |
| Reserves | Tax and insurance escrows 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 Fees | $15,000 to cover third party reports and processing/underwriting costs |
| Origination Fee | Fannie Mae requires minimum origination fee equal to 1% of loan amount for loans of $9 million or less; Minimum fee decrease with increasing loan size; Origination fee can be charged “outside” of the interest rate as a separate fee, or it can be built into the rate |
| Legal Fees | $8,000 to $12,000 varying with 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 3-4 weeks of application |
| Assumability | Loan is 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 costs |
| Ineligible Property Characteristics | A property that offers food service and/or property on college/ university owned land |
| Requirements | Dedicated Student Housing Specific Requirements*: a) Pre-Review requirements with Fannie Mae; b) Near a campus with at least 20,000 students; c) Within 2 miles of campus or on public/university transportation line; d) Parental lease guarantees or financially qualified students required; and e) Lease terms must be a minimum of 12 months * Not required for student concentration below 80% |
Finance Reports
First Madderra & Cazalot report scheduled for release in early 2011. Please check back.
Multi-Family Reports
A comprehensive data base of over 90,000 multi-family units throughout Louisiana and the Mississippi Gulf Coast area. Learn More
