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BK-0910597
Venture and Fannie Mae offer a Seniors Housing product that provides flexible financing for independent Living/Congregate Care and Assisted Living Facilities (ALF). Pooled transactions for seasoned properties with experienced owners and operators are also eligible at fixed and/or floating rates. The benefits of this product include supplemental mortgages, balloon and fully amortizing mortgages, credit enhancement of existing fixed and variable rate bonds, and competitive pricing
(For a Printable PDF of this program, please click here)
Eligibility Properties classified as Independent Living/Congregate Care and Assisted Living. Skilled Nursing facilities are not eligible
Loan Amounts $2 million minimum. No maximum
Term/Amortization 10 to 25 year term. 25 year amortization (standard). 30 year amortization (with waiver)
Interest Rate Fixed (standard). Adjustable (with waiver)
Debt service coverage ratio 1.35x minimum (Independent Living/Congregate Care) 1.45x minimum (Assisted Living Facilities) (Bond-financed properties have more favorable terms)
Loan to value 75% maximum
Personal recourse Non-recourse with standard "Carve-Outs" and Key Principals obligations
Prepayment Yield maintenance with 1% minimum
Origination Fee 1% / $20,000 minimum
Commitment Fee 2% (refundable)
Third Party Fees Includes legal, appraisal, engineering, and environmental reports. Seismic reports and survey may also be required
Minimum Occupancy Requirement 90% sustained for 24 months. Properties with less that 24 months will be considered on a case by case basis. (85% acceptable for special circumstances)
Replacement reserve impounds Required - not less than $250/unit (waiver considered for special circumstances)
Taxes and Insurance Impounds Required
Assumability Assumable with lender approval and a 1% fee
Supplemental Mortgages Available after 1 year (up to two available, plus one more upon sale)
Venture Placement Fee 1% to 2% dependent on property