Freddie Mac has launched the Freddie Mac Student Housing Mortgage, which provides financing for the acquisition or refinancing of multifamily properties.
The Student Housing Mortgage is for purpose-built student housing and multifamily properties that are more than 50% occupied by students. The new product offers flexible terms that include 30-year amortization and the potential for full or partial interest only, as well as up to 80% loan-to-value financing, Freddie Mac says. The product is available to all Freddie Mac Program Plus Seller/Servicers.
Eligibility requirements include the following:
- Proximity to a college or university of two miles or less, or on a public transportation route;
- A college or university size of at least 8,000 students. However, Freddie Mac will consider properties located close to multiple schools that have a combined student body of at least 8,000; and
- A nine- to 12-month lease (a ground lease for college- or university-owned land and master leases with the college or university may be permitted).
Source: Freddie Mac