FANNIE MAE DUS®
Seniors Housing
Arbor’s Seniors Housing provides financing options for properties that provide Independent Living (IL), Assisted Living (AL), Alzheimer’s/Dementia Care (ALZ), or any combination.
| Loan Amount | Minimum $5M, with exceptions on a case-by-case basis |
| Loan Term | 5 to 30 years |
| Amortization | Up to 30 years |
| Minimum DSCR |
For combinations of IL, AL, and ALZ, special rules apply to calculate minimum DSCR. |
| Maximum LTV | 75% (80% for fixed-rate, tax-exempt bonds) |
| Rate Structure | Fixed- and adjustable-rate options available |
| Eligible Properties |
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| Eligible Borrower | Single Asset Entity. Owners and operators must have a minimum of five years experience in Seniors Housing, owning and/or managing a minimum of five stabilized properties |
| Property Requirement | All properties must have a fully operational separate category sprinkler system in all units and in common areas and may not charge entrance fees. Typical community fees are allowed |
| Occupancy Requirement | At least 90% occupied for each of the past five fiscal years |
| Tax & Insurance Escrows | Fully funded replacement reserve, tax and insurance escrows are required |
| Replacement Reserves | Underwritten at a minimum $300 per unit per annum. |
| Recourse | Nonrecourse execution is available, with standard carve-outs required for “bad acts” such as fraud, bankruptcy and illegal transfers |
| Commercial Space | Maximum 10% of net rentable area and 10% of effective gross income. |
| Required Reports | Appraisal, Property Condition Assessment, Phase I Environmental, Zoning, Termite, Flood and Seismic Report (for properties in Seismic Zones 3 and 4)
Licensed seniors housing properties also require a Seniors Housing Liability Assessment Report |
| Prepayment | Yield maintenance, defeasance, and graduated prepayment premium |
| Assumable | Loans may be assumable, subject to review and approval by the Lender and Fannie Mae of the proposed new borrower’s financial capacity and experience. 1% assumption fee |
| Subordinate Financing | Not allowed |
| Supplemental Financing | Supplemental Loans are available |
| Pricing | Risk based pricing; more favorable pricing available for higher DSC and lower LTV |
| Rate Lock | 30- to 180-day commitments; the early rate lock option is available with prior approval from Fannie Mae, allowing the borrower to lock a rate after the lender completes preliminary underwriting; extended rate lock feature is also available, allowing the borrower to lock a rate 45 to 365 days in advance of closing |
| Application Deposit | $20,500; covers estimated processing and legal fees |
| Origination Fee | 1% of loan amount |
| Good Faith Deposit | 2% of loan amount, due at rate lock, refundable post-closing |
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