Tap to get financing
Nasdaq: JNVRMultifamily Loans
Property Types
MultifamilyHealth Care & Senior LivingStudent HousingAffordable HousingMobile Home ParkOffice, Retail & More
Loan Options
Fannie MaeFreddie MacConstruction LoansLoans Under $1MFreddie Mac SBLFHA/HUD Multifamily LoansForeign National LoansCMBSBank LoansLife CompaniesBridge LoansHard MoneySoft MoneyMezzanine FinancingCrowdfundingSBA 504 LoansMezzanine Construction LoansUSDA 538 LoansFix and Flip LoansFractured Condo LoansDSCR LoansRefinance
Resources
BlogLoan DocsForms and TemplatesRatesLingoVideo LibraryMultifamily For SaleCommercial MortgagesFrequently Asked QuestionsBeginner's Guide
Calculators
Multifamily Mortgage CalculatorCap Rate CalculatorNOI CalculatorDSCR CalculatorLTV CalculatorDebt Yield CalculatorCash on Cash Return CalculatorYield Maintenance CalculatorIRR Calculator
About
About UsLeadershipTeamContactAffiliate Program (Coming Soon)We're Hiring
(561) 556-5777 Get financing →
Interest Rates

Today’s rates for a wide variety of multifamily loans
Check Today's Rates →

!Learn why you should refinance your multifamily property now →
Newly Published
Sep 22 at Multifamily Loans
Active vs. Passive Multifamily Investing: Which Is Best for Me?
Sep 19 at Multifamily Loans
Multifamily Minute Reader Reflections: How Much Have Your Insurance Costs Increased?
Sep 12 at Multifamily Loans
The Chicago Multifamily Market: Looking to Late 2023
Explore the Janover Network
Sep 21 at SBA 7(a) Loans
The ‘Hidden’ Costs of SBA 7(a) Loans
Sep 13 at SBA 7(a) Loans
How to Write a Business Plan for an SBA 7(a) Loan
Sep 12 at SBA 7(a) Loans
Why 2023 Is the Right Time to Buy a Business
Was This Article Helpful?
Last updated on Jan 3, 2023
4 min read

Freddie Mac Seniors Housing Loans

Freddie Mac fixed and variable-rate non-recourse financing for the acquisition and refinancing seniors housing properties.

In this article:
  1. Freddie Mac-Insured Loans for Independent Living, Assisted Living, Memory Care, and Limited Skilled Nursing Properties 
  2. Sample Freddie Mac Terms for Seniors Housing Loans in 2023
  3. Get Financing
Start Your Application and Unlock the Power of Choice Experience expert guidance, competitive options, and unparalleled industry expertise.
Click Here to Get Quotes →
$5.6M offered by a Bank at 6.1%$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1.4M offered by a Credit Union at 6.1%Click Here to Get Quotes!

Freddie Mac-Insured Loans for Independent Living, Assisted Living, Memory Care, and Limited Skilled Nursing Properties 

America's need for quality senior housing has never been greater — and if you're an investor or developer looking to help fill that need, a Freddie Mac Seniors Housing Loan could be a great way to get financing.

These loans have a wide variety of uses, permitting both the acquisition and refinancing of Independent Living (IL), Assisted Living (AL), Skilled Nursing (SN), and Memory Care properties, including facilities for Alzheimer's/Dementia patients. 

Freddie Mac Seniors Housing Loans offer terms of 5-10 years for variable-rate loans, and up to 30-years for fixed-rate loans, LTVs of up to 75% and DSCRs as low as 1.30x. Plus, this form of financing is non-recourse and is fully assumable with lender approval and a 1% fee. 

Keep reading below to learn more, or click here to download our Freddie Mac Seniors Housing Loan term sheet.

Sample Freddie Mac Terms for Seniors Housing Loans in 2023

Size:  

  • Varies, determined by LTV and DSCR requirements

  • Most loans are $5 million or more

  • Use:  Acquisition or refinance of senior housing properties 

    Terms:  5-10 years (Up to 30 years for fixed-rate loans) 

    Amortization:  Up to 30 years, with interest-only payment options 

    Maximum LTV/Minimum DSCR:  

    Independent Living Properties: 

    • 5-7 Year Loans:

      • Amortizing: 75%/1.30x

      • Partial Term Interest-Only: 70%/1.30x

      • Full Term Interest-Only: 65%/1.40x

    • 7 Year Loans:

      • Amortizing: 75%/1.30x

      • Partial Term Interest-Only: 75%/1.30x

      • Full Term Interest-Only: 65%/1.40x

    • 7+ Year Loans:

      • Amortizing: 75%/1.30x

      • Partial Term Interest-Only: 75%/1.30x

      • Full Term Interest-Only: 65%/1.40x

    • Assisted Living Properties (50%+ units):  

      • 5-7 Year Loans:

        • Amortizing: 70%/1.45x

        • Partial Term Interest-Only: 70%/1.45x

        • Full Term Interest-Only: 60%/1.55x

      • 7 Year Loans:

        • Amortizing: 75%/1.40x

        • Partial Term Interest-Only: 75%/1.40x

        • Full Term Interest-Only: 65%/1.50x

      • 7+ Year Loans:

        • Amortizing: 75%/1.40x

        • Partial Term Interest-Only: 75%/1.40x

        • Full Term Interest-Only: 65%/1.50x

      • Skilled Nursing Properties (Max. 20% of NOI):  

        • 5-7 Year Loans:

          • Amortizing: 70%/1.50x

          • Partial Term Interest-Only: 70%/1.50x

          • Full Term Interest-Only: 60%/1.65x

        • 7 Year Loans:

          • Amortizing: 75%/1.45x

          • Partial Term Interest-Only: 75%/1.45x

          • Full Term Interest-Only: 65%/1.55x

        • 7+ Year Loans:

          • Amortizing: 75%/1.45x

          • Partial Term Interest-Only: 75%/1.45x

          • Full Term Interest-Only: 65%/1.55x

        • Recourse:  Non-recourse with standard “bad boy” carve-outs

          Prepayment Options: Defeasance for fixed-rate loans. Yield maintenance also option available. Four main prepayment options are available for floating-rate loans, and prepayment premiums are waived for the final 90 days of the loan. 

          Eligible Borrowers: 

          • Eligible borrowers include limited partnerships, limited liability companies, corporations, or a tenancies in common (TICs), and must typically be a special purpose entity (SPE)

          • While most borrowers must be single purpose entities (SPEs), on loans less than $5 million, borrowers may be able to be Single Asset Entities instead

          • For tenancies in common (TICs), each member needs to be a SPE, though TICs are generally not recommended

          • Eligible Properties: 

            • Independent living (IL) properties

            • Assisted living (AL) properties

            • Memory care properties (including Alzheimer's/Dementia care)

            • Properties with a limited amount of skilled nursing (SN), capped at maximum 20% of the property's net operating income

            • Any combination of the above

            • Refinancing Test: 

              No Refinance Test is necessary if the loan has an LTV ratio of 55% or less and an amortizing DSCR of:

              • Independent Living: Greater than or equal to 1.45x

              • Assisted living: Greater than or equal to 1.55x

              • Skilled Nursing: Greater than or equal to 1.60x

              • *All partial-term interest-only loans must pass the Refinance Test

                Assumability:  Loans are typically assumable with approval and a 1% fee

                Timing:  Most loans typically close between 60-90 days after the pre-screening process begins. Loans may close in between 30-60 days for repeat borrowers (if using the same lender) 

                Advantages:

                • Very competitive interest rates

                • Up to 75% LTV for some properties

                • Loans are non-recourse

                • Supplemental loans allowed

                • Early Rate Locks (for fixed-rate loans) are available for extended periods, including Freddie Mac’s standard early rate-lock and index lock options. Extended rate locks allow borrowers to lock rates between 45 and 365 days before closing

                • Eligible mixed-use properties permitted (Seniors Housing properties must derive no more than 20% of their Effective Gross Income from commercial uses or have more than 20% of overall square footage set aside for commercial space)

                • Disadvantages:

                  • Requires replacement reserves

                  • Requires third-party reports including Phase I Environmental Assessment, Appraisal, Physical Needs Assessment, Seismic Report may be required for properties in Seismic Zones 3 and 4

                  • Seniors Liability Assessment also typically required

                  • Estimated Lender Fee of $25,000 for third-party reports

                  • Estimated Lender Legal fee of between $17,500 and $25,000

                  • Freddie Mac Application Fee of $5,000 or 0.15% of loan amount (whichever is greater)

                  • 2% rate lock fee required (refunded after closing)

                  • Subordinate financing not permitted

                  In this article:
                  1. Freddie Mac-Insured Loans for Independent Living, Assisted Living, Memory Care, and Limited Skilled Nursing Properties 
                  2. Sample Freddie Mac Terms for Seniors Housing Loans in 2023
                  3. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

Multifamily Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487
(561) 556-5777 

hello@multifamily.loans

Multifamily Loans

Beginner's Guide
Multifamily Refinance
Multifamily Mortgage Calculator
Current Rates
Commercial Mortgage Calculator
Commercial Loan Rates

Site Information

Privacy Policy
Terms of Use

This website is owned by a company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

This website utilizes artificial intelligence technologies to auto-generate responses, which have limitations in accuracy and appropriateness. Users should not rely upon AI-generated content for definitive advice and instead should confirm facts or consult professionals regarding any personal, legal, financial or other matters. The website owner is not responsible for damages allegedly arising from use of this website's AI.

Copyright © 2023 Janover Inc. All rights reserved.