Commercial & Apartment Loan Originator Commercial Loan Direct Announces New Student Housing Mortgage Programs Nationwide

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Commercial Loan Direct expands its apartment mortgage production nationwide by introducing its new agency-based student housing program nationwide via its correspondent relationship with Fannie Mae and FHA.

Apartment loans by Commercial Loan Direct

Apartment loans by Commercial Loan Direct

Commercial Loan Direct’s dedicated student products provide attractive terms and competitive prices for the purchase or refinance of properties that, because of construction and location, specifically cater to a student tenant base.

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Commercial Loan Direct, a business division of CLD Capital and one of the top five online originators of commercial and apartment loans in the country, hopes to expand its apartment mortgage production nationwide by introducing its new agency-based student housing loan programs nationwide via its correspondent relationship with Fannie Mae and FHA. The company can also offer bridge loans over one million dollars to stabilize student housing properties that would be taken-out via Fannie or FHA (through CLD). Furthermore, CLD can originate student housing loans in smaller communities through its USDA apartment loan program.

Commercial Loan Direct’s dedicated student products provide attractive terms and competitive prices for the purchase or refinance of properties that, because of construction and location, specifically cater to a student tenant base and are not readily convertible to conventional multifamily housing.

Fernando Martin, Executive VP, says that "Most colleges and universities across the country are seeing increased enrollment primarily because of high unemployment rates and the inability of young people to secure full-time employment. As a result, there is an increasing demand in the workforce for highly trained, college educated professionals that in many cases require advance degrees to compete. The purpose of CLD’s programs is to offer a home for our increasing student housing demand. We are excited to offer these products with very attractive terms and even non-recourse options for qualified borrowers."

Fannie Mae Student Housing Program’s guidelines:

  • Loan Amount: Over $1,000,000
  • Amortization: Up to 25 Years
  • Longer amortization may be available for higher DSC and lower LTV
  • Minimum DSC 1.35 for anything over 20% student tenancy for fixed rate 1.10 for adjustable rate
  • Maximum LTV 75%
  • Fixed Rate Yes
  • Eligible Property: Specifically cater to a student tenant base. Not readily convertible to conventional multifamily housing. Must be greater than 80% student occupied. Requires 12-month leases and parental guarantees. Food services not permitted
  • Enrollment Requirement: Greater than 10,000 students
  • Occupancy Requirement: 90%
  • Tax and Insurance Escrows. Monthly deposits required. May be waived if certain criteria are met
  • Replacement Reserves Underwritten at a minimum $250 per unit per annum. Must be funded unless unusual mitigating circumstances exist
  • Recourse: Non-recourse with standard exceptions for fraud and misrepresentation
  • Commercial Space Eligible
  • Required Reports: Appraisal, Property Condition Assessment and Phase I Environmental
  • Prepayment: Yield maintenance or defeasance
  • Assumable: Yes
  • Subordinate Financing - Not allowed
  • Supplemental Loans; Eligible for secondary financing after 12 months
  • Pricing: Tiered Pricing Matrix. More favorable terms available for higher DSC and lower LTV.
  • Rate Lock: Standard 10-day rate lock period
  • Fees: 3rd party fees estimated at application time

Commercial Loan Direct ('CLD') a division of CLD Capital is a wholesale commercial mortgage lender and apartment mortgage banker originating for its own portfolio. In addition to offering its own financial programs, CLD has partnered with institutional investors, Fannie Mae, Freddie Mac, FHA, SBA, USDA, life insurance companies, banks and real estate investment trusts to bring you a wider selection of additional lending vehicles. With a focus on commercial loans over $1 million, a diversified mix of financing products, a state of the art online commercial lending platform, and a staff of experienced professionals, CLD provides a cost-efficient solution for apartment lending and commercial property financing.

View CLD's Commercial Rates as of today

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Leanne Eicoff
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