Seniors Housing Loans
Apartment Financing America offers competitive seniors housing loans for the construction, acquisition, and refinancing of properties built to meet the special housing needs of seniors. Seniors housing loans are for age-restricted, skilled nursing, independent living and assisted living facilities.
We provide permanent financing for seniors housing loans via agency lending, placing loans for Fannie Mae, Freddie Mac and FHA. We also offer very competitive low permanent rate seniors housing financing for construction loans using FHA 221d3 and 221d4 construction or substantial rehabilitation.
As is the case with virtually all of the loan programs we offer, our experience, expertise and record of success with seniors housing loans paves the way towards making your seniors housing projects more successful.
See the loan fact sheet below.
Seniors Housing Financing Programs
Fannie Mae Seniors Housing Loans
FNMA Senior Housing Loans
FNMA Senior Housing Loans are provided under the Fannie Mae DUS loan program, which was created in 1989 to meet the needs of real estate developers and owners of multifamily projects seeking short- and long-term, fixed-rate, non-recourse financing. FNMA Senior Housing Loans are designed to provide long term financing for either two groups of senior citizens.
- Independent Living – Generally means a typical apartment complex which is age-restricted to seniors 55+ and without teenage children. The traditional apartment has all the usual features that a non-age-restricted property would have, such as a swimming pool, club house, full kitchens and baths, and garages. Age-related services can be provided such as a small bus service, ATM banking, Internet, hobbies and crafts, movies, etc. so long as the rent charged is no greater than the area market rents. No meal services or on-site medical services can be available. These types of property appeal to active seniors.
- Assisted Living – Generally means the next level of care, whereby the management provides daily meal service, check-in service, health monitoring, and other services related to “frail elderly.” Assisted Living seniors housing loans, under these definitions, however, cannot be provided for “nursing home” functions like on-site medical personnel and medical dispensation for non-ambulatory seniors or for Alzheimer’s patients.
Existing income-producing multifamily properties designated as either independent living or assisted living or both with at least three stable months of 90% occupancy or better. Properties can be newly constructed or recently rehabilitated.
Amortization and Loan Terms
Typically 30 years depending on property’s age with balloon terms of 5,7, or 10 years or full term loans of 25, or 30 years
Minimum Loan Size
Minimum programmatic loan size is $1,000,000 but preferred minimum is $5,000,000
None recourse for monetary default with typical carve-outs
For-profit individuals and entities and not-for-profit single asset entities
All loans are subject to a prepayment penalty calculated using either a yield maintenance or defeasance formula for all but the last six months of the term of the loan. These terms can be modified by adjusting the interest rate.
Maximum Loan Refinancing
The amount supported by using a 1.45 to 1.00 debt service ratio or 75.0% of appraised value. There are no statutory limits to loan amounts
Market interest rates change daily. Call for quote.
All loans are assumable and transferable at anytime for a 1.00% fee
Required for property taxes, insurance, and replacement reserves as calculated by the underwriter
125% to 150% of the estimated cost of repairs per the physical needs report. Funds released upon completion.
No third party subordinate financing, however Fannie Mae Supplemental Loans are allowed beginning 12 months after the initial first mortgage loan closing.
Preliminary Submission Package
- Location map and property description and photos (or website info)
- Unit mix showing type, number, size, and current rent of all units
- Description of commercial space if any
- Last three months rent rolls along with year-to-date financial statements
- Last full 36 month operating statements or pro-forma if recently completed construction
- Business resume and financial statement of principals and entity
- Terms of existing debt if any