Seniors Housing Loans
Benefits
Customized solutions
Flexible loan terms
Competitive pricing
Certainty of execution
Speed in processing and underwriting
Term
5 to 30 years
Amortization
Up to 30 years
Interest rate
Fixed- and variable-rate options available
Eligibility
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.
Accrual
30/360 and Actual/360
Recourse
Non-recourse execution is available with standard carve-outs for “bad acts,” such as fraud and bankruptcy.
Escrows
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.
Assumption
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.