FANNIE MAE DUS®
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|
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 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||Non-recourse 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).
Management and operations reports are required for all Seniors Housing Properties.
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|