Fannie Mae Seniors Housing Loans

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

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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