| LOAN AMOUNT | Minimum $5M, with exceptions on a case-by-case basis |
| LOAN TERM | 5 to 30 years |
| AMORTIZATION | Up to 30 years |
| MINIMUM DSCR |
For combinations of IL, AL, and ALZ, special rules apply to calculate minimum DSCR. |
| MAXIMUM LTV | 75% (80% for fixed-rate, tax-exempt bonds) |
| RATE STRUCTURE | Fixed- and adjustable-rate options available |
| ELIGIBLE PROPERTIES |
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| ELIGIBLE BORROWER | Single 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 REQUIREMENT | All 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 REQUIREMENT | At least 90% occupied for each of the past five fiscal years |
| TAX & INSURANCE ESCROWS | Fully funded replacement reserve, tax and insurance escrows are required |
| REPLACEMENT RESERVES | Underwritten at a minimum $300 per unit per annum. |
| RECOURSE | Nonrecourse execution is available, with standard carve-outs required for “bad acts” such as fraud, bankruptcy and illegal transfers |
| COMMERCIAL SPACE | Maximum 10% of net rentable area and 10% of effective gross income. |
| 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 | Yield maintenance, defeasance, and graduated prepayment premium |
| ASSUMABLE | Loans 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 |
| SUBORDINATE FINANCING | Not allowed |
| SUPPLEMENTAL FINANCING | Supplemental Loans are available |
| PRICING | Risk based pricing; more favorable pricing available for higher DSC and lower LTV |
| RATE LOCK | 30- 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. Interest Rate is determined by risk-based pricing; Fixed rate transactions are benchmarked on the associated Treasury Bill; Variable rate transactions are benchmarked on the 30 or 90day LIBOR; Low leverage, large or pooled transactions may qualify for reduced pricing |
| APPLICATION DEPOSIT | $24,500; covers estimated processing and legal fees |
| ORIGINATION FEE | 1% of loan amount |
| GOOD FAITH DEPOSIT | 2% of loan amount, due at rate lock, refundable post-closing |
