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Freddie Mac Student Housing Mortgage^SM

The Freddie Mac Student Housing Mortgage^SM product offers financing for the acquisition or refinancing of purpose-built student housing. The product also serves traditional garden, mid-, or high-rise multifamily properties that are more than 50 percent occupied by students.

Key Benefits

• Flexible terms include both 30-year amortization and the potential for full-term interest-only.
• A nine-month lease is permitted under the Freddie Mac Student Housing Mortgage (12-month is preferred).
• Student housing properties located within close proximity to multiple schools that have a combined student body of 8,000 students or more are eligible for consideration.
• Properties located less than two miles from a college/university or on a public transportation route are eligible.
• Ground lease for college- or university-owned land may be permitted.
• Master leases with college/university may be permitted.

At a Glance

Product Summary
Loan Terms	5-, 7-, and 10-year terms with balloon
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* 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
Maximum Loan-to-Value	Acquisition Amortizing: 5 - < 7 yrs: 70% ≥ 7 – < 10 yrs: 75% 10+ yrs: 80% Full-term IO: < 7 yrs: 60% ≥ 7 yrs: 65%	Refinance & Supplemental Amortizing: 5 - < 7 yrs: 65% ≥ 7 – 10 yrs: 70% 10+ yrs: 75% Full-term IO: < 7 yrs: 60% ≥ 7 yrs: 65%
Minimum Debt Coverage Ratio2	Acquisition & No Cash-out Refinance Amortizing: 5 - < 7 yrs: 1.35x ≥ 7 - ≥ 10 yrs: 1.30x Full-term IO: 1.60x	Cash-out Refinance & Supplemental Amortizing: 5 - < 7 yrs: 1.40x ≥ 7 - ≥ 10 yrs: 1.35x Full-term IO: 1.60x
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

¹Must have an identified bathroom for every two bedrooms. Each apartment made up of multiple dwelling units must have a separate full kitchen.
² For Student Housing adjustable-rate mortgages (ARMs), add 0.05x to the debt coverage ratio (DCR) listed on the Freddie Mac Adjustable-Rate Mortgage term sheet.

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.