Fannie Mae - Health Care Facility Loans -

New construction, expansion or substantial rehabilitation of intermediate care, board and care, residential care, assisted living, and skilled nursing facilities. Additional property types include limited adult day care or independent living. Financing is not permitted for properties charging substantial up-front admission fees.

Features

Major movable equipment may be financed.
Two-step processing under HUD’s Multifamily Accelerated Processing (MAP).
May also serve as credit enhancement for tax-exempt bond deals.

Structure
Loan Amount	(i) 90% (95% for nonprofit Borrowers) of the estimated value of the physical improvements and major movable equipment; (ii) 90%, with value determined net of proprietary earnings; or (iii) Limited to 90% of cost (95% for nonprofit Borrowers).
Debt Service Coverage	1.11x (minimum, after deducting for proprietary earnings); 1.05x for non-profit Borrowers.
Loan Terms	40 years, (not to exceed 75% of estimated economic life), plus construction period (interest only).
Amortization	Fully amortizing. 40 years for most properties.
Recourse	nonrecourse
Rates	Ginnie Mae MBS and whole loan rates priced daily.
Rate may be locked after Borrower's acceptance of HUD's Firm Commitment. Interest rate buy-downs available.

Optional Features
Subordinate Financing	Soft second allowed up to 7.5% of value.
Assumability	Fully assumable with HUD’s and Lender’s consent.
Prepayment	Any prepayment lock out or penalty periods negotiable with Investor.

Requirements
Initial deposit to the Replacement Reserve can be included in the mortgage; monthly deposits required. Single-asset Borrower entity. Comply with prevailing wage requirements under the Davis-Bacon Act.

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