FREDDIE MAC®
Seniors Housing
Arbor’s Senior Housing Loan offers flexible loan terms for variety of seniors housing property types.
| Loan Amount | Minimum is $5,000,000, with exceptions on a case-by-case basis. |
| Loan Term | 5-10 years (up to 30 years for fixed-rate loans). |
| Financing Options | Acquisition or refinance loans, bond credit enhancement, Freddie Mac’s Revolving Credit Facility and Targeted Affordable Housing transactions. |
| Minimum DSCR | 1.30x for independent living; 1.40x for facilities with an assisted living and/or Alzheimer’s component greater than 50%; coverage for properties contain any skilled nursing component is 1.45x. |
| Maximum LTV | Maximum 75% of appraised value, maximum of 80% for tax-exempt bond finance transactions. |
| Rate Structure | Fixed and adjustable rate options available. |
| Eligible Properties |
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| Eligible Borrowers/Borrowing Entity |
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| Eligible Loans |
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| Tax & Insurance Escrow | Generally required. |
| Replacement Reserve Escrow | Generally required. |
| Recourse | Non-recourse with standard exceptions, including for fraud and misrepresentation. |
| Commercial Space | No more than 20% of effective gross income and not more than 20% of property’s total square footage. |
| 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 | Defeasance for fixed-rate loans. Yield maintenance option available. Four main prepayment options available for floating-rate loans. No premium for final 90 days. |
| Assumable | Subject to approval and 1% fee. |
| Subordinate Financing | Not allowed. |
| Supplemental Loans Available | Subject to requirements in the loan agreement and Freddie Mac. |
| Refinance Test | No Refinance Test is necessary if the loan has an LTV of 55% or less and an amortizing debt coverage ratio of:
All partial-term interest-only loans must pass the Refinance Test. |
| Pricing | Tiered Pricing Matrix. More favorable pricing available for higher DSCR and lower LTV. |
| Rate Lock | Standard 5 day rate lock period. Early Rate Lock (for fixed-rate loans) are available for extended periods, including Freddie Mac’s standard early rate-lock and index lock options. |
| Spread Hold | Quoted loan spreads are held for 75 days from signed loan application, allowing sufficient time to close loans at quoted spreads and, if applicable, at index lock rates. |
| Freddie Mac Application Fee | Greater of $5,000 or 0.15% of loan amount. |
| Arbor Application Fee | Estimated at $25,000 for third-party reports. |
| Legal/Closing Fee | Arbor’s legal fee estimated between $17,500 and $25,000. |
| Good Faith Deposit | 2% of loan amount, due at rate lock, refundable post-closing. |
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