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Assisted Living Mortgages and Seniors Housing Mortgages


What are the types of senior housing loans? CLD offers assisted living financing for senior housing loans including congregate care facility mortgages, skilled care nursing home mortgages, and continuing care retirement community loans. Our expertise and experience with long term care financing covers the full spectrum of seniors housing, from independent living to skilled care nursing and acute care facilities.


Seniors Housing Programs

 

Fannie Mae Mortgages

Loan Type *Property Type Min Loan Amount Max LTV Term Length Amortization
Fannie Mae (FNMA) A, AH, C, MH, SH, ST $750,000 80% 3-30 Years 15-30 Years
*A = Apartment AH = Affordable Housing C = Cooperative Housing MH = Manufactured Housing SH, = Senior Housing ST = Student Housing
Fannie Mae Info Fannie Mae Rates

Fixed-Rate Mortgage: The Fixed-Rate product is for the purchase or refinance of existing, stabilized properties including: traditional, affordable housing, seniors housing, student housing, and manufactured housing communities. Maximum LTV is 80% for purchases and 75% for refinances with a 1.25x DSCR requirement. Loan terms are from 5-15 years.

Structured Adjustable-Rate Mortgage: The Structured ARM product is for the purchase or refinance of existing, stabilized traditional and manufactured housing communities. Senior housing, student housing, and moderate rehabilitation mortgages may be eligible on a case-by-case basis. Affordable housing, bond credit enhancements and substantial rehabilitation are not eligible. The minimum loan amount is $25 million, maximum LTV is 75%, minimum DSCR is 1.0x and terms range from 5-10 years.

Adjustable Rate Mortgage 7-6: The ARM 7-6 product is for the purchase or refinance of existing, stabilized properties including: traditional, affordable housing, seniors housing, student housing, and manufactured housing communities. Maximum LTV is 80% for purchases and 75% for refinances with a 1.00x DSCR requirement at the loan cap rate. Loan terms are 7 years with a 1 year lock-out period and a 1% prepayment premium thereafter.

Senior Housing Financing: The Senior Housing product is for the finance or refinance of existing properties that provide Independent Living (IL), Assisted Living (AL), Alzheimer’s/Dementia Care (ALZ), or any combination thereof (e.g. IL/AL/ALZ, AL/ALZ) for senior citizens. Sponsors and Operators must have a minimum of five years experience in the seniors housing industry and a minimum of five stabilized properties. Maximum LTV is 75%, minimum DSCR is 1.30x. for IL, 1.40x for AL, and 1.45x for ALZ.

Supplemental: The Supplemental Loans product is subordinate financing for properties with a pre-existing fixed or adjustable Fannie Mae Mortgage Loan that has been in place for a minimum of 12 months. Maximum LTV is 75% and minimum DSCR is 1.30x. New third party reports may not be required and early rate lock is available for a fee.

Choice Refinance Program: The Choice Refinance product is a streamlined refinance process with more limited documentation for existing DUS Cash or MBS mortgages to be refinanced by the same Lender. Properties must be stabilized and well-maintained and mortgages must be in good standing.

 

Freddie Mac Mortgages

Loan Type Property Type * Min Loan Amount Max LTV Term Length Amortization
FHLMC A, AH, MH, SH $1,000,000 80% 5-30 Years 30 Years
*A = Apartment AH = Affordable Housing MH = Manufactured Housing SH = Senior Housing
Freddie Mac Info Freddie Mac Rates

Senior Housing Loan: This type of loan is for the acquisition or refinance of senior housing properties including: independent living communities, assisted living communities, skilled nursing or memory care facilities. Borrowers must have experience as an owner/operator of comparable facilities and meet ownership structure requirements. Rates can be floating or fixed, with the ability to advance rate lock.

Small Balance Loans: The Freddie Mac small balance program provides financing of small balance loans using hybrid ARM or fixed-rate loan products, offering partial-term and full-term interest-only. This program also features a streamlined process and competitive pricing. The loan amount for this program is $1 million to $5 million.

 

FHA Mortgages

Loan Type Property Type * Min Loan Amount Max LTV Term Length Amortization
FHA / HUD A, AH, C, H, MC, SH, SNF $5,000,000 83.3% 35-40 Years 35-40 Years
*A = Apartment AH = Affordable Housing C = Cooperative H = Hospitals MC= Memory Care SH = Senior Housing SNF= Skilled Nursing Facilities
FHA Info FHA Rates

Supportive Housing for the Elderly Program - Section 202 : Section 202 provides interest-free capital advances to finance the construction, rehabilitation or acquisition of supportive housing projects for very low-income elderly persons. This program also provides rent subsidies to help make the units affordable.

Supportive Housing for Persons with Disabilities - Section 811 : Section 811 provides interest-free capital advances and subsidies to nonprofit developers of affordable housing for persons with disabilities. It also provides rental assistance to state housing agencies. The last appropriation was appropriated for traditional 811 capital advances and was made in FY 2011.

Assisted Living Conversion Program (ALCP) : This program provides a grant to private, nonprofit owners of eligible developments that wish to convert some or all of the dwelling units into an Assisted Living Facility (ALF) or Service-Enriched Housing (SEH) for elderly residents for the purpose of aging in place. Assisted Living Facilities (ALFs) and Service-Enriched Housing (SEH) must provide services such as personal care, transportation, meals, housekeeping, and laundry available through a licensed or certified third party service provider.

Demonstration Program for Elderly Housing for Intergenerational Families : This program provides Capital Advance funding to cover the cost of expanding intergenerational housing. In addition, Section 202 Capital Advance projects funded under this program qualify for Project Rental Assistance Contract (PRAC) funds to cover the difference between the HUD-approved operating costs and the tenants' contribution toward rent (30% of adjusted monthly income).

Emergency Capital Repair Program (ECRP) :This program provides private nonprofit owners of eligible developments for occupancy by elderly tenants with grants to make emergency capital repairs that relate to an immediate threat to the health, safety, and quality of life of the tenants.

Skilled Nursing Facilities (SNF) and Special Use

 
Refi
Const.*1
Sub Rehab*2
Term
LTV
Type
FHA
Y
Y
Y
30-40yr
95%
ALF/SNF
FNMAE
Y
N
Y
10-25yr am
75%
ALF
Mezzanine
Y
N
Y
2-3yr
75%
ALF/SNF
Bridge
Y
N
Y
2-5yr
75%
ALF/SNF
  • *1 With major movables.
  • *2 With major movables.

 

Small, Rural and Community Hospitals

 
Refi w Repairs*2
Const.
Sub Rehab
Term
LTV
Type
FHA*1
Y
Y
Y
25yr
90%
Acute Care
USDA*3
Y
N
N
10-25yr am
75%
Acute Care
  • 1* Including tax exempt bond enhancement.
  • 2* Requires 20% of loan proceeds for repairs/equipment.
  • 3* No tax exempt bond enhancement.

Seniors Independent Living

 
Refi
Const.
Sub Rehab
Term
LTV
Type
FHA
Y
Y
Y
35-40yr
95%
Age Restricted Apts.
FNMAE
Y
N
Y
10-25yr am
75%
Congregate Care
Mezzanine
Y
N
Y
2-3yr
85%
Congregate Care
Bridge
Y
N
Y
2-5yr
85%
Congregate Care

In its prequalifying review, Commercial Loan Direct will attempt to estimate the assisted living loan amount and the fees and costs associated with the senior housing mortgage. Actual assisted living loans and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.

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