Seniors Housing Loans

Fannie Mae multifamily lending provides financing options for properties that provide independent living (IL), assisted living (AL), Alzheimer’s/dementia care (ALZ) or any combination thereof.


Customized solutions
Flexible loan terms
Competitive pricing
Certainty of execution
Speed in processing and underwriting


5 to 30 years


Up to 30 years

Interest rate

Fixed- and variable-rate options available


Existing, stabilized, purpose-built seniors housing properties

Sponsors and operators experienced in the seniors housing industry

Lenders experienced in financing seniors housing and approved by Fannie Mae for participation

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, AL 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.


30/360 and Actual/360


Non-recourse execution is available with standard carve-outs for “bad acts,” such as fraud and bankruptcy.


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.


Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.