* 40%+ Leased to Undergraduates or Graduate Students
* Purchase, Refinance or Cash-Out
* Lending Territory - Nationwide
Loan Amount: $1 million - $100 million
LTV - Purchase: 75% - 80% @ 1.25 DSCR
Refinance: 75% - 80% of Appraised value @ 1.25 DSCR
Cash-Out: 70% - 80% of Appraised value @ 1.30 DSCR
Term: 10 years
Amortization: 30 years
Rate: 3.50% to 4.50% Fixed
Fees:No upfront fees underwriter pricing and sizing loans; no application or 3rd party fees (such as appraisals) until borrower signs FHA-HUD, Fannie Mae or Freddie Mac term sheet
1. Must have been on title for 2+ years for similar sized student housing in the last 3 years.
2. Liquidity must cover "cash to close" (combined all key principals)
3. 660+ Credit Score
4. No bankruptcy, foreclosure or short sales during the past 3 years
5. Borrower - Single Asset LLC
Occupancy: 90% consecutive occupancy for the past 90 days
Debt Coverage: 1.30 fixed rate
1.05 adjustable rate
Prepayment: Yield Maintenance with no lockout
3rd Party Reports: MAI appraisal, physical needs assessment, environmental Phase I: Seismic may be required in zones 3 and 4
Escrows: Taxes and Insurance funded repair and replacement based on physical needs assessment; may be waived if less than 65% LTV with no deferred maintenance
Application Fee: $15,000 for 3rd party reports, processing and underwriting costs
Legal: $8,000 - $12,000
Rate Lock: Rate lock fter commitment; Early Rate Lock Option available 1 week after application
Ineligible: Properties that offer food service and / or located on university owned land (except for dedicated student housing property described below).
Dedicated student housing requirements (if student concentration 80%+)
a) Near campus with 10,000+ students
b) Within 2 miles of campus or on a public / university transportation line,
c) Have operated at least 1 full schoolo year (August / September through April / May and
d) In 2nd full year of operations
e) 80%+ 12 months leases with parental guarantees or leased by students with financial ability to pay required rent through employment or other documented financial means.
Funding: 45 - 60 days from application to commitment, dependent on 3rd party report timing and borrower's submission of due diligence.