If you are interested in Freddie Mac Senior Housing financing, it's important to understand your options. Below you will find frequently asked questions concerning Freddie Mac Senior Housing financing to help you with your lending decision. See below to find out about terms and amortization, maximum LTV, eligible properties, and more.
Freddie Mac Senior Housing Questions
Questions & Answers
What are the available terms and amortization?
The term available is 5-10 years with up to 30 years for fixed rate loans
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What is the maximum LTV?
Varies by term and property type up to 75% LTV
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What is the minimum Debt Service Coverage?
Varies by term, LTV and property type
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What borrowers are eligible?
- 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); see Section 6.13 of the Loan Agreement for 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)
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What property types are eligible?
- 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
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