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Freddie Mac Student Housing

If you are interested in Freddie Mac Student Housing financing, it's important to understand your options. Below you will find frequently asked questions concerning Freddie Mac Student Housing financing to help you with your lending decision. See below to find out about terms and amortization, maximum LTV, eligible properties, and more. 

Freddie Mac Student Housing Questions

Questions & Answers

What are the available terms and amortization?

The term available is 5-10-years (up to 30 years for fixed-rate loans if loan is not purchased for securitization) with an amortization of up to 30 years

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What is the maximum LTV?

The maximum loan-to-value is up to 80%

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What is the minimum Debt Service Coverage?

Varies by term and LTV

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What borrowers are eligible?

  • Borrower may 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, real estate investment trusts (REITs) and certain trusts may also be acceptable in limited circumstances, subject to additional requirements
  • Borrower must generally be a Single Purpose Entity (SPE); however, on loans less than $5 million, upon borrower’s request, a borrower other than a TIC may be a Single Asset Entity instead of an SPE
  • If the borrower is structured as a TIC, each tenant in common must be a SPE

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What property types are eligible?

  • Purpose-built student housing properties; must have a minimum of one bathroom for 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% 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

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