Term Sheet (PDF)


Benefits

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

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

Term

5 - 30 years.

Amortization

Up to 30 years.

Interest Rate

Fixed- and variable-rate options available.

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.