Fannie Mae Seniors Housing Loan Program

Let's move your project forward

Terms

Description
Non-recourse, assumable financing for the acquisition or refinance of stabilized independent living (IL) and assisted living (AL) properties; Properties that assist residents with memory care (MC) are eligible for
financing under Fannie Mae’s Seniors Housing Program; Properties should have achieved and sustained at least an average of 90% occupancy for the preceding 90 days; Newly constructed and stabilized Senior Housing properties, as well as campuses containing skilled nursing beds, are eligible for financing under Fannie Mae’s Senior Housing program, on a case-by-case basis; Buildings must be fully sprinklered; At least 80% of the beds must be private pay unless a waiver is granted; Buy-In and Rental Continuing Care Retirement Communities (CCRC’s) are also eligible, on a case-by-case basis

Loan Amount
Minimum $5,000,000, with exceptions on a case-by-case basis; Supplemental Loans are available under the Fannie Mae Seniors Housing Program

Loan Term
5-, 7-, 10-, 15-, or 18-year balloons; 20-, 25- and 30-year fully amortizing

Amortization
30 years maximum

Loan to Value Maximum
Maximum 75% of appraised value; maximum of 80% for tax-exempt bond financed transactions

Coverage Minimum
1.30x for properties with 50% or greater independent living; 1.40x for properties with an assisted living component greater than 50%; Minimum coverage for stand-alone memory care properties is 1.45x;
Minimum coverage for properties containing any skilled nursing component is 1.50x

Borrower
Domestic single asset borrowing entity is required; Ownership and management must demonstrate previous experience with properties of similar type, size and service level

Interest Rate
Risk-based pricing; Fixed rate transactions are benchmarked on the associated Treasury Bill; Variable rate transactions are benchmarked on the 30 or 90day LIBOR; Low leverage, large or pooled transactions may qualify for reduced pricing

Prepayment
Yield Maintenance and Graduated Prepayment