Student Housing Loans

Financing options for housing properties where greater than 40% of the units are leased to students.


5 to 30 years


Up to 30 years

Interest rate

Fixed- and variable-rate options available

Maximum LTV


Minimum DSCR

1.30x for fixed-rate

1.05x for variable-rate, subject to a fixed-rate test

Property considerations

Cannot be located on university-owned land (except for a Dedicated Student Housing Property as described below).

Supplemental financing

Supplemental Loans are available

Prepayment availability

Flexible prepayment options are available.

Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and declining prepayment premium for variable-rate loans.

Rate lock

30-to-180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.


30/360 and Actual/360


Non-recourse execution with standard carve-outs required for “bad acts,” such as fraud and bankruptcy.


Replacement reserve, tax and insurance escrows are typically required.

Third-party reports

Standard third-party reports required, including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment. Assumption loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.

Dedicated Student Housing Properties

Dedicated Student Housing Properties (i.e., 80% or more units leased to undergraduate or graduate students) require additional underwriting documentation. In addition, a Dedicated Student Housing Property must:

  • Be near a campus with at least 10,000 students enrolled (greater than 50% full-time)
  • Be within two miles of a campus boundary line or on a college/university-owned transportation line
  • Have operated for at least one full school year (i.e., August/September through April/May), and be in its second full year of operations
  • Include an amount equal to or greater than 80% of total leases with 12-month terms include parental guaranties or be leased by students having the financial ability to pay for the required rent (whether through employment or other documented financial means)

A Dedicated Student Housing Property may be located on university-owned land if the Key Principal has had a minimum of five years of Dedicated Student Housing experience, and operates at least one other Dedicated Student Housing Property located on college- or university-owned land.