Freddie Mac Seniors Housing Mortgage
Offers flexible loan terms for a variety of seniors housing property types
Key Benefits
- Specifically designed for the purchase or refinance of seniors housing
- Offers multiple financing options with flexible loan terms
- Includes senior apartments, independent living properties, assisted living properties, and properties with a limited amount of skilled nursing or dementia care
At-a-Glance
| Product Summary |
Independent Living Properties, Assisted Living Properties and Properties With a Limited Amount of Skilled Nursing or Dementia Care |
| Loan Terms |
Ranging from 5 to 30 years |
| Eligible Borrowers |
Experienced owner/operator of comparable facilities |
| Financing Options |
- Fixed-rate mortgages
- Capital Markets ExecutionSM
- Standard and capped ARMs
- Bond credit enhancements
- Structured and Affordable transactions including multiple loan pools
- Supplemental mortgages and other options
|
| Replacement Reserve Escrow |
Required |
| Tax and Insurance Escrow |
Required |
| Early Rate-Lock Available |
Yes |
| Supplemental Financing Available |
Yes |
| Securitization Available |
Yes, please refer to the Capital Markets ExecutionSM Term Sheet for securitization requirements |
Loan-to-Value Ratio and Amortizing1 Debt Coverage Ratio
| SENIORS HOUSING – INDEPENDENT LIVING |
Fixed-Rate LTV/DCR |
Adjustable-Rate LTV/DCR (DCR at max note rate) |
| Amortizing |
Partial Interest-Only |
Interest-Only (using amortizing payment) |
Amortizing |
Partial |
Interest-Only (using amortizing payment) |
| Acquisition and No Cash-Out Refinance |
| > 7 Year Term2 |
75% / 1.30x |
75% / 1.30x |
60% / 1.35x |
75% / 1.10x |
75% / 1.10x |
60% / 1.15x |
| < 7 Year Term |
65% / 1.35x |
60% / 1.40x |
60% / 1.40x |
65% / 1.10x |
60% / 1.15x |
60% / 1.15x |
| Cash-Out Refinance |
| > 7 Year Term2 |
70% / 1.35x |
70% / 1.35x |
60% / 1.40x |
70% / 1.15x |
70% / 1.15x |
60% / 1.20x |
| < 7 Year Term |
65% / 1.40x |
60% / 1.45x |
60% / 1.45x |
60% / 1.15x |
60% / 1.20x |
60% / 1.20x |
| SENIORS HOUSING – ASSISTED LIVING (> 50% AL UNITS) |
Fixed-Rate LTV/DCR |
Adjustable-Rate LTV/DCR (DCR at max note rate) |
| Amortizing |
Partial Interest-Only |
Interest-Only (using amortizing payment) |
Amortizing |
Partial Interest-Only |
Interest-Only (using amortizing payment) |
| Acquisition and No Cash-Out Refinance |
| > 7 Year Term2 |
75% / 1.40x |
75% / 1.40x |
60% / 1.50x |
75% / 1.20x |
75% / 1.20x |
60% / 1.25x |
| < 7 Year Term |
65% / 1.45x |
60% / 1.50x |
60% / 1.50x |
65% / 1.20x |
60% / 1.25x |
60% / 1.25x |
| Cash-Out Refinance |
| > 7 Year Term2 |
70% / 1.45x |
70% / 1.45x |
60% / 1.50x |
70% / 1.25x |
70% / 1.25x |
65% / 1.30x |
| < 7 Year Term |
60% / 1.50x |
60% / 1.55x |
60% / 1.55x |
60% / 1.30x |
60% / 1.30x |
60% / 1.30x |
| SENIORS HOUSING – SKILLED NURSING (MAX 20% OF BEDS) |
Fixed-Rate LTV/DCR |
Adjustable-Rate LTV/DCR (DCR at max note rate) |
| Amortizing |
Partial Interest-Only |
Interest-Only (using amortizing payment) |
Amortizing |
Partial Interest-Only |
Interest-Only (using amortizing payment) |
| Acquisition and No Cash-Out Refinance |
| > 7 Year Term2 |
75% / 1.45x |
Ineligible |
Ineligible |
75% / 1.25x |
Ineligible |
Ineligible |
| < 7 Year Term |
70% / 1.50x |
Ineligible |
Ineligible |
65% / 1.25x |
Ineligible |
Ineligible |
| Cash-Out Refinance |
| > 7 Year Term2 |
70% / 1.50x |
Ineligible |
Ineligible |
70% / 1.30x |
Ineligible |
Ineligible |
| < 7 Year Term |
65% / 1.55x |
Ineligible |
Ineligible |
60% / 1.30x |
Ineligible |
Ineligible |
1 The debt coverage ratio (DCR) calculated for the Partial Interest-Only and Interest-Only period uses an amortizing payment.
2 Top Tier Borrowers; add +5% LTV (10+ years only)
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The information in this document is not a replacement or substitute for information found in the Freddie Mac Multifamily Seller/Servicer Guide. Terms set forth herein are subject to change without notice.
