Freddie Mac Seniors Housing Loan Program

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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 Freddie Mac’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 communities, as well as campuses containing skilled nursing beds, are eligible for Freddie Mac’s Senior Housing program financing, on a case-by-case basis; Buildings must be fully sprinklered; At least 75% 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 Freddie Mac Seniors Housing Program

Loan Terms
5-15 years

Amortization
Up to 30 years

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

Coverage Minimum
1.30x for independent living; 1.40x for properties with an assisted living component greater than 50% and/ or memory care component less than 40%; Coverage minimum for properties containing any skilled nursing component is 1.45x

Borrower
The Borrowing entity must satisfy all Single Purpose Entity requirements of the Freddie Mac Seniors Housing Program; 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 90-day LIBOR