Fannie Mae Seniors Housing Loans

 

There are many opportunities today to invest in high quality, senior housing properties. However, securing the financing for such a project can be complicated and at times confusing. When it comes to qualifying for a senior housing property loan through Fannie Mae, you can count on the highly experienced experts at LSG Lending Advisors to be there with you every step of the way. We are proud of the reputation we have earned in the industry over the years for taking the time to get to know our clients, in order to create tailor fit loan solutions for each one. When you are ready to obtain a Fannie Mae senior housing property loan, the team at LSG Lending Advisors is here to help.  

  • Over 7 years property loan underwriting experience.
  • Expert knowledge of financial terms and principles.
  • Highly experienced at guiding clients through complex transactions.
  • In depth analysis of current operating statements and projected financials.
  • Specialists in evaluating third party reports, including appraisals, environmental documents, market studies and project capital needs assessments.
  • Loan review documentation.
  • Custom fit financing solutions for every client.

Our highly knowledgeable experts can guide clients with regard to adhering to Fannie Mae lending guidelines. In addition, we can also introduce you to some of the best Fannie Mae approved lenders in the industry. You can count on us to help you secure a senior housing property loan.   

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.

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