Fannie Mae has developed a special
product for the financing of dedicated student housing properties located near
universities with 10,000 or more students. This product takes into account the
unique characteristics associated with student housing by modifying typical
multifamily underwriting standards to maximize loan proceeds. Because this is a
Fannie Mae product offered by PN C ARCS, the borrower is able to take advantage
of favorable DUS™ pricing, flexible terms, supplemental mortgages, and the
premium service our customers have come to expect.
PNC ARCS is one of America’s leading
commercial lenders with an acknowledged expertise in multifamily finance and one
of America’s leading Fannie Mae DUS™ lenders for more than a decade.
As a PNC Real Estate Finance Company,
PNC ARCS is part of PNC Financial Services, one of the largest diversified
financial services companies in America. Now PNC ARCS can provide access to debt
and equity financing, construction loans, permanent financing, forward
commitments, tax credits, direct bond purchase programs, mezz, bridge, Fannie
Mae, Freddie Mac, FHA and Capital Markets. One single source to meet our
borrowers’ needs.
The company is now the single source for all real estate financing across the full range of commercial property types.
Beyond the benefits of any specific lending product, PNC ARCS’ experience, expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. No one delivers more.
Product Overview
Eligibility Dedicated student housing with 80% or more of units rented to students.
Properties with food service or located on college/university land are not
eligible.
Loan Amounts $1.5 million minimum. No maximum.
Term/Aamortization 5,7 and 10 year terms
Up to 30 year amortization. Interest Only available but subject to some restrictions.
Interest Rates Fixed or adjustable
Debt Service Coverage Ratio Fixed: 1.30x minimum.
ARM: 1.05x minimum
Loan to Value 75% maximum
Personal Recourse Non-recourse with standard "Carve-Outs" and Key Principal obligations
Prepayment
Yield maintenance, defeasance or graduated prepayment
Origination Fee 1% / $20,000 minimum
Commitment Fee 1% or less when applicable. $20,000 minimum.
Third Party Fees Includes legal, appraisal, engineering, and environmental reports. Seismic
reports and survey may also be required.
Replacement Reserve Impounds Required - not less that $250/unit
Waiver considered for special circumstances.
Taxes and Insurance Impounds Required. Waiver considered for low leverage transactions.
Assumability Assumable with lender approval and a 1% fee
Supplemental
Mortgages Available after 1 year. Up to 2 available, plus 1 more upon sale and assumption.
$500,000 minimum