Fannie Mae provides financing for multifamily seniors housing properties. This program includes flexible financing, competitive pricing, and a speedy execution. Sponsors and Operators must have a minimum of five years experience in the seniors housing industry and a minimum of five stabilized properties.
| Fannie Mae Seniors Housing Mortgages | |
| Term | 5-30 years |
| Amortization | Up to 30 years |
| Max LTV | 75% |
| Min DSCR DSCR Calculator | 1.3x |
| Recourse | Non-recourse |
| Escrows | Fully funded replacement reserve, tax and insurance escrows are required. |
| Third-Party Reports | Standard third-party reports including 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 types of seniors housing properties, and a Regulatory Compliance Report is required for licensed seniors housing properties. |
| Interest Rate | Fixed and variable rates. |
| Assumption | Mortgages are typically assumable. |
| Rate Lock | 30- to 90-day commitments. An early rate lock feature is available allowing the borrower to lock a rate 45 to 180 days in advance of closing. |
| Prepayment Options | Yield maintenance and other graduated prepayment options. |
| Supplemental Financing | Available |
| Additional Considerations | The Credit Enhancement Instrument issued by Fannie Mae is provided in accordance with the terms of a Reimbursement Agreement between the borrower and Fannie Mae, among other documents. |