SENIORS HOUSING FANNIE MAE LOAN PROGRAM
Fannie Mae offers financing solutions for acquisition, refinance, and renovation for existing properties. Berkadia has delegated authority to underwrite Seniors Housing loans, and that means fast decisions and creative solutions.
Eligible Properties
Eligible Sponsors & Operators
Interest Rate & Terms
• Independent living, assisted living, assisted living with alzheimer’s, in any combination, or standalone alzheimer’s/dementia
• Continuing care retirement communities and properties with skilled nursing units may be considered
Sponsors and operators with a minimum of five years experience in the Seniors Housing industry and a minimum of five stabilized properties
• Fixed-rates and variable-rates are available
• Actual/360 and 30/360
• 30- to 90-day commitments are available. Early rate lock feature is also available, allowing the borrower to lock a rate 45 to 365 days in advance of closing
• Terms ranging from five to 30 years are available
Loan-To-Value Ratio and Amortizing Debt Coverage
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SENIORS HOUSING FANNIE MAE LOAN PROGRAM
Recourse Requirements
Minimum Vacancy and Collection Loss
• Non-recourse execution
• Standard carve-outs to non-recourse for “bad acts” such as fraud are required
• 5% for IL properties or properties with a majority of IL units
• 7% for AL, AL/ALZ, or ALZ properties with more than 60 units
• 10% for AL, AL/ALZ or ALZ, properties with 60 or fewer units
• 10% for standalone ALZ properties with 60 or fewer units
Escrow Fully funded replacement reserve, tax and insurance escrows are required
Third-party Reports
• Standard third-party reports (appraisal, phase I environmental assessment and a physical needs assessment) are required
• In addition, a consultant’s report on management and operations is required for all properties and a regulatory compliance report must be required for AL, AL/ALZ, and ALZ properties
Performance Reporting Quarterly monitoring
Executions Available Cash and MBS
Assumption Loans are assumable, subject to review and approval by Berkadia and Fannie Mae of the new borrower’s financial capacity and experience with Seniors Housing
Change in Management Changes in management must be approved by both Berkadia and Fannie Mae
Prepayment
Supplemental Financing
Borrowers have three prepayment premium options: yield maintenance, defeasance, and graduated prepayment premium (example: 5-4-3-2-1 on 5-year term)
• DUS Supplemental Mortgage Loans are available
• The Supplemental Mortgage Loan must comply with the terms of the Seniors Housing property type
