FANNIE MAE DUS® Seniors Housing
LOAN AMOUNTMinimum $5M, with exceptions on a case-by-case basis
LOAN TERM5 to 30 years
AMORTIZATIONUp to 30 years
  • 1.30x if the property is 100% Independent Living/li>
  • 1.40x for properties with an assisted living and/or Alzheimer’s component greater than 50%
  • 1.45x if the property is stand-alone Alzheimer’s/Dementia Care
  • 1.50x if the property contains skilled nursing units

For combinations of IL, AL, and ALZ, special rules apply to calculate minimum DSCR.

MAXIMUM LTV75% (80% for fixed-rate, tax-exempt bonds)
RATE STRUCTUREFixed- and adjustable-rate options available
  • Independent Living properties
  • Assisted Living properties
  • Alzheimer’s/Dementia Care
  • Newly constructed and stabilized Seniors Housing facilities, as well as campuses containing skilled nursing beds on a case-by-case basis
ELIGIBLE BORROWERSingle 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 REQUIREMENTAll 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 REQUIREMENTAt least 90% occupied for each of the past five fiscal years
TAX & INSURANCE ESCROWSFully funded replacement reserve, tax and insurance escrows are required
REPLACEMENT RESERVESUnderwritten at a minimum $300 per unit per annum.
RECOURSENon-recourse execution is available, with standard carve-outs required for “bad acts” such as fraud, bankruptcy and illegal transfers
COMMERCIAL SPACEMaximum 10% of net rentable area and 10% of effective gross income.
REQUIRED REPORTSAppraisal, 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.
PREPAYMENTYield maintenance, defeasance, and graduated prepayment premium
ASSUMABLELoans 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
SUPPLEMENTAL FINANCINGSupplemental Loans are available
PRICINGRisk based pricing; more favorable pricing available for higher DSC and lower LTV
RATE LOCK30- 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 FEE1% of loan amount
GOOD FAITH DEPOSIT2% of loan amount, due at rate lock, refundable post-closing