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 of $5,000,000 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 | 90% average physical occupancy for 12 months for IL. AL/ALZ properties must be 90% occupied on average for 15 months prior to funding. |
| 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). 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. 1.00% 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 90 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 | $15,000. 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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