FNMA Healthcare Loans
Refinance, Cash-Out and Purchase Loans
4 to 5.5% fixed
Term: 20, 25 and 30 year fully amortizing OR 5, 7, 10, 15 or 18-year balloon loans
LTV: 75% of appraised value
- Stabilized independent living (IL)
- Assisted living (AL)
- Memory care properties (MC)
- Skilled nursing
- Buy-In & Rental Continuing Care Retirement Communities (CCRC’s)
Requires 90%+ occupancy preceding 90 days, fully sprinklered & 80%+ of beds private pay
Supplemental Loans available.
Coverage minimum: 1.30x for properties with 50%+ independent living; 1.40x for properties with assisted living 50%+; for stand-alone memory care properties 1.45x; skilled nursing facilities 1.50x
- Domestic single asset LLC, Corporation or other entity required
- Ownership and management must have previous experience with properties of similar type, size and service level
Interest Rate: Risk-based pricing; Fixed rate benchmarked on associated Treasury Bill; Variable rate benchmarked on 30 or 90day LIBOR; Low leverage, large or pooled transactions may qualify for reduced pricing.
Prepayment: Yield maintenance and graduated prepayment
Third Party Reports: MAI Appraisal, Physical Needs Assessment, Environmental Phase I & Operations Assessment required; Seismic Report in Zones 3 and 4; Regulatory Compliance Report required for licensed properties.
Reserves: Tax, insurance, repair and replacement escrows required based on greater of engineer’s Physical Needs Assessment or $300 per unit per year.
Application Fee: $25,000 covers underwriting costs and third-party reports.
Origination Fee: 1% of loan amount
Lender Legal Fees: $25,000 (varyies with transaction characteristics)
Good Faith Deposit: 2% of loan amount; 75% refundable at closing & 25% refunded at loan delivery
Timing: For new borrowers, 60-90 days from commencement of pre-screen process to closing; dependent on 3rd party report timing and Borrower’s submission of completed loan docs; Timing reduced for repeat borrowers.
Rate lock after borrower acceptance of commitment; Early rate lock and extended rate lock available to lock rate 45 to 180 days before closing
Let’s Move your project forward…
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