Freddie Mac Student Housing Mortgage^SM

Financing for the acquisition or refinance of purpose-built student housing

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

At a Glance

Product Summary
Loan Terms	5-30 years
Loan Amount	$5 million-$50 million
Eligible Borrowers	Experienced owner/operator of student housing properties Partnership (general or limited); corporation; trust, joint venture, limited liability company or individual
Financing Options	Acquisition or refinance
Eligible Property Type	Purpose-built student housing properties. Must have a minimum of one bathroom for every two bedrooms. 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
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	Non-recourse except for standard carve-out provisions
Supplemental Mortgages	Freddie Mac may place a supplemental mortgage on an existing Freddie Mac first mortgage
Exclusions	Residence halls or other multiple occupancy rooms with a shared common bathroom and centralized food service areas or dining halls
Securitization Available	Yes, please refer to the Capital Markets Execution^SM Term Sheet for securitization requirements

Loan-to-Value Ratio and Amortizing¹ Debt Coverage Ratio

Student Housing	Fixed-Rate LTV/DCR			Adjustable-Rate LTV/DCR (DCR at max note rate)
Student Housing	Amortizing	Partial Interest-Only	Interest-Only (using amortizing payment)	Amortizing	Partial Interest-Only	Interest-Only (using amortizing payment)
Acquisition and No Cash-Out Refinance
= 7 Year Term	80% / 1.30x	80% / 1.30x	65% / 1.35x	80% / 1.10x	80% / 1.10x	65% / 1.15x
< 7 Year Term	70% / 1.35x	60% / 1.40x	60% / 1.40x	70% / 1.10x	60% / 1.15x	60% / 1.15x
Cash-Out Refinance
= 7 Year Term	75% / 1.35x	75% / 1.35x	60% / 1.40x	75% / 1.15x	75% / 1.15x	60% / 1.20x
< 7 Year Term	65% / 1.40x	60% / 1.45x	60% / 1.45x	65% / 1.15x	60% / 1.20x	60% / 1.20x

¹ The debt coverage ratio (DCR) calculated for the Partial Interest-Only and Interest-Only periods uses an amortizing payment.

Contact Us

Download and print Freddie Mac's contact information

PDF Version

Download the Student Housing Mortgage term sheet.

The information in this document is not a replacement or substitute for information found in the Freddie Mac Multifamily Seller/Servicer Guide. Terms set forth herein are subject to change without notice.

Freddie Mac Student Housing MortgageSM