Freddie Mac Seniors Housing Loans

Purchasing a healthcare property can be a wise business decision, but the financing portion of the project can be a complicated process. When embarking on such an important venture, it is very important to have an expert by your side every step of the way. The healthcare financing experts at LSG Lending Advisors have many years of experience in every aspect of obtaining a loan for such a property.  Whether your plans include a purchase, acquisition, new construction, refinance or rehabilitation, you can depend on us to ensure that you have a successful transaction.  We know that every client’s business needs are unique, so that is why we take the time to create custom made solutions for every client.

  • Over 7 years multifamily 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.
  • Tailor fit financing solutions for every client.

We make the process of adhering to all FHA/HUD LEAN lending guidelines an easy one and we also have access to some of the best FHA/HUD LEAN approved lenders in the industry. Get in touch with us today to learn more about how we have helped so many healthcare property owners with all of their lending and finance needs. We are ready to put our industry knowledge and experience to work for you!

The Freddie Mac Seniors Housing program is for experienced owners/operators of independent living, assisted living, memory care, and properties with limited amount of skilled nursing for the acquisition or refinancing of their current loans. The term are 5-10 years (up to 30 years for fixed-rate loans) for replacement reserve, and tax and escrows are generally required. The LTV maximum is as high as 75% for partial-term interest only, and as high as 65% for full-term interest only.

Term Sheet for Freddie Mac Seniors Housing

Terms 5-10 years (up to 30 years for fixed-rate loans).
Eligible Loans
Financing Options
Replacement Reserve Escrow Generally required.
Tax and Insurance Escrow

Generally required.

Early Rate-Lock Options (for Fixed-Rate Loans) Pending eligibility, available for extended periods, including standard early rate-lockPDF-ICON and Index Lock optionsPDF-ICON.
Spread Hold Quoted loan spreads are held for 75 days from signed loan application, allowing sufficient time to close loans at quoted spreads and, if applicable, at Index Lock rates.
Application Fee Greater of $5,000 or 0.15% of loan amount.
Refinance Test

No Refinance Test is necessary if the loan has a loan-to-value (LTV) ratio of 55% or less and an amortizing debt coverage ratio (DCR) of:

  • For independent living ≥1.45x
  • For assisted living ≥1.55x
  • For assisted living with skilled nursing beds ≥1.60x

All partial-term interest-only loans must pass the Refinance Test

Eligible Borrowers
  • Experienced owner/operator of comparable facilities.
  • If the loan is less than $5 million, the borrower may be a Single Asset Entity with some additional restrictions and may be a limited partnership, general partnership (no individuals may be general partners), limited liability company, corporation, or real estate investment trust (must be a corporation, not a trust). 
  • If the loan is $5 million or more, the borrower may be a limited partnership, a corporation, or a limited liability company and must be a Single Purpose Entity (SPE). The Loan Agreement Section 6.13 outlines basic SPE requirements.
  • If the borrower is structured as a tenancy in common (TIC), each tenant in common must be an SPE (Note: TICs are not encouraged).
Eligible Property Types
  • Independent living properties.
  • Assisted living properties.
  • Memory care properties.
  • Properties with a limited amount of skilled nursing (maximum 20% of NOI).
  • Any combination of the above.

 

Loan-to-Value (LTV) Ratios and Amortizing Debt Coverage Ratios (DCR)

Loan-to-Value (LTV) Ratios and Amortizing Debt Coverage Ratios (DCR) for Senior Housing Loans

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