The Fannie Mae Seniors Housing program offers flexible loan terms and customized solutions for experienced sponsors and operators in the seniors housing industry. The loan terms offered are between 5 to 30 years for existing, stabilized, purpose-built seniors housing properties. Fixed and variable rates are available.
Term Sheet for Fannie Mae Seniors Housing
||Up to 30 years.
||Fixed- and variable-rate options available.
- 80% for fixed-rate tax-exempt bonds.
- 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 loans are available.
||Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and declining prepayment premium for variable-rate loans.
||30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
||30/360 and Actual/360.
||Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy.
||Replacement reserve, tax, and insurance escrows are typically required.
||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.
||Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.