Program for Existing, Purpose Built Senior Housing Properties
The Fannie Mae Senior Housing Program is intended for existing, purpose built senior housing properties that are managed by experienced operators. The available loan term is 5-30 years and the maximum allowed loan to value is 75% or 80% for fixed rate, tax-exempt bonds.
Term Sheet for Fannie Mae Seniors Housing
| Term |
5-30 years. |
| Amortization |
Up to 30 years. |
| Interest Rate |
Fixed- and variable-rate options available. |
| Maximum LTV |
- 75%.
- 80% for fixed-rate tax-exempt bonds.
|
| Minimum DSCR |
- 1.30x, if the property is 100% independent living.
- 1.40x, if the property is 100% assisted living.
- 1.45x, if the property is stand-alone Alzheimer’s/Dementia Care.
- For combinations of IL, A,L and ALZ, special rules apply to calculate minimum DSCR.
|
| Supplemental Financing |
Supplemental loans are available. |
| Prepayment Availability |
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. |
| Accrual |
30/360 and Actual/360. |
| Recourse |
Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy. |
| Escrows |
Replacement reserve, tax, and insurance escrows are typically required. |
| Third-Party Reports |
In addition to standard third-party reports (including Appraisal, Phase I Environmental Site Assessment, and Property Condition Assessment), management and operations reports are required for all seniors housing properties. Licensed seniors housing properties also require a regulatory compliance report. |
| Assumption |
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience. |