Freddie Mac Introduces Student Housing Mortgage

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

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