Financing a Condo for Student Housing

3 Replies

Anyone have a recommendation for an investor friendly lender who can close a condo deal quickly.   The issue I'm running into is the current management company has it leased out by the bedroom.  All the lenders I've talked to have a problem with this.  As soon as they hear it's leased by the bedroom they think it's a boarding house and they either want to redo the lease, or they can't do the loan.

Any ideas?


Can you have the lender get in touch with the current PM? Also, do you want to use it for Student Rental housing? If so, maybe you can tell your lender that when the current lease expires you will only do leases with everyone on one lease (which is what I do anyway). Also, how big is this condo and how many people are living in it? You don't want to cram too many people into too small of a space, even college kids. The roommate dynamics can turn in a hurry if they are on top of each other all the time. 

Dave, yes it is currently rented to students and will most likely continue to be rented to students.  It's a 3 bedroom unit and there are only 3 tenants.

Really just need to find a lender who doesn't care the leases are currently by the bedroom.  After closing it won't matter.  I've never had a lender as for a copy of lease during the loan term, only during underwriting.

Originally posted by @Michael Sloan :

Anyone have a recommendation for an investor friendly lender who can close a condo deal quickly.   The issue I'm running into is the current management company has it leased out by the bedroom.  All the lenders I've talked to have a problem with this.  As soon as they hear it's leased by the bedroom they think it's a boarding house and they either want to redo the lease, or they can't do the loan.

Any ideas?

Are they 12 month leases or just for the school year and do you have the parents as guarantors?