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Download Term Sheet
FANNIE MAE® DUS
Seniors Housing
More than two decades of leadership in the Seniors Housing market.
BENEFITS
- Customized solutions.
- Flexible loan terms.
- Competitive pricing.
- Certainty of execution.
- Speed in processing and underwriting.
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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.
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TERM
5 – 30 years.
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AMORTIZATION
Up to 30 years.
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INTEREST RATE
Fixed- and variable-rate options available.
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MAXIMUM LTV
75% (80% for fixed-rate tax-exempt bonds).
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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.
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SUPPLEMENTAL FINANCING
Supplemental Loans are available.
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PREPAYMENT AVAILABILITY
Loans may be voluntarily prepaid upon payment of yield maintenance for fixed-rate loans and declining prepayment premium for variable-rate loans.
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RATE LOCK
30- to 180-day commitments. Borrowers may lock a rate with the Streamlined Rate Lock option.
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ACCRUAL
30/360 and Actual/360.
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RECOURSE
Non-recourse execution is available with standard carve-outs for “bad acts” such as fraud and bankruptcy.
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ESCROWS
Replacement reserve, tax, and insurance escrows are typically required.
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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.
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ASSUMPTION
Loans are typically assumable, subject to review and approval of the new borrower’s financial capacity and experience.
In its prequalifying review, Lument will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.