FREDDIE MAC SENIOR HOUSING LOANS
Refinancing and Financing for Independent Living, Assisted Living, Memory Care, Alzheimer’s Care, Long-Term Care Facilities and Rehabilitation Centers in Dallas Fort Worth and North Texas.
Multi-Housing Loan Amount
Minimum $5,000,000
Freddie Mac Seniors Housing Loans in Texas
Description
Non-recourse, assumable financing for the acquisition or refinance of stabilized independent living (IL) and assisted living (AL) properties; Properties that assist residents with memory care (MC) are eligible for financing under Freddie Mac’s Seniors Housing Program; Properties should have achieved and sustained at least an average of 90% occupancy for the preceding 90 days; Newly constructed and stabilized Senior Housing communities, as well as campuses containing skilled nursing beds, are eligible for Freddie Mac’s Senior Housing program financing, on a case-by-case basis; Buildings must be fully sprinklered; At least 75% of the beds must be private pay unless a waiver is granted; Buy-In and Rental Continuing Care Retirement Communities (CCRC’s) are also eligible, on a case-by-case basis
Loan Amount
Minimum $5,000,000, with exceptions on a case-by-case basis; Supplemental Loans are available under the Freddie Mac Seniors Housing Program
Loan Terms
5-15 years
Amortization
Up to 30 years
Loan to Value Maximum
Maximum 75% of appraised value, maximum of 80% for tax-exempt bond financed transactions
Coverage Minimum
1.30x for independent living; 1.40x for properties with an assisted living component greater than 50% and/ or memory care component less than 40%; Coverage minimum for properties containing any skilled nursing component is 1.45x
Borrower
The Borrowing entity must satisfy all Single Purpose Entity requirements of the Freddie Mac Seniors Housing Program; Ownership and management must demonstrate previous experience with properties of similar type, size and service level
Interest Rate
Risk-based pricing; Fixed rate transactions are benchmarked on the associated Treasury Bill; Variable rate transactions are benchmarked on the 30 or 90-day LIBOR
Prepayment
Defeasance and Graduated Prepayment
Third Party Reports
MAI Appraisal, Physical Needs Assessment, Environmental Phase I Assessment, and Zoning Report are required for all transactions; Seismic Report may be required for properties in Seismic Zones 3 and 4; A Seniors Housing Liability Assessment is required for licensed properties
Reserves
Tax and Insurance escrows are required; Repair and Replacement escrow funding is required, based on the greater of the engineer’s Physical Needs Assessment or $300 per unit per year
G.R.E.A. Application Fee
$25,000, covers underwriting costs and third-party reports
Origination Fee
1% of the loan amount
Freddie Mac Application Fee
Greater of $5,000 or 0.15% of the loan amount
Lender Legal Fees
Approximately $25,000, varying with characteristics of the transaction
Timing
For new Borrowers, 60-90 days from the commencement of the Pre-screen process to Closing; dependent upon third party report timing and Borrower’s submission of due diligence; This timing is reduced for repeat Borrowers
Good Faith Deposit
2% of the loan amount; 75% refundable at closing with the remaining 25% refundable at loan delivery
Rate Lock
Rate lock occurs after Borrower’s acceptance of the commitment; Extended Rate Lock feature is also available, allowing the Borrower to lock a rate 45 to 180 days in advance of Closing
For current Freddie Mac Seniors Housing mortgage rates, contact our multi-housing lenders in Dallas.
Call For a Quote:
(214) 679-9673
Related Fannie Mae Loan Options
FANNIE GREEN
FANNIE HYBRID ARM
