Fannie Mae Mortgages

*A = Apartment AH = Affordable Housing C = Cooperative Housing MH = Manufactured Housing SH, = Senior Housing ST = Student Housing

Fixed-Rate Mortgage:

The Fixed-Rate loan is designed for the acquisition or refinancing of existing, stabilized properties. Key features include:

• Maximum Loan-to-Value (LTV): Up to 80% for purchases and up to 75% for refinances
• Debt Service Coverage Ratio (DSCR): Minimum requirement of 1.25x
• Loan Terms: Flexible terms ranging from 5 to 15 years

This product offers stability and predictability, making it an excellent choice for long-term property investment strategies.

Structured Adjustable-Rate Mortgage:

The Structured ARM loan product is designed for the purchase or refinancing of existing, stabilized traditional and manufactured housing communities. On a case-by-case basis, senior housing, student housing, and moderate rehabilitation mortgages may also qualify. However, this product is not available for affordable housing, bond credit enhancements, or substantial rehabilitation projects.

Key features include a minimum loan amount of $25 million, a maximum loan-to-value (LTV) ratio of 75%, and a minimum debt service coverage ratio (DSCR) of 1.0x. Loan terms are available from 5 to 10 years, providing flexible options for large-scale, stabilized housing communities.

Adjustable Rate Mortgage 7-6:

The ARM 7-6 loan is tailored for the purchase or refinance of existing, stabilized properties. Key features include:

• Maximum Loan-to-Value (LTV): Up to 80% for purchases and up to 75% for refinances
• Debt Service Coverage Ratio (DSCR): Minimum of 1.00x at the loan cap rate
• Loan Term: 7 years
• Prepayment Terms: 1-year lock-out period followed by a 1% prepayment premium

This product provides flexibility with adjustable rates, making it a strong option for borrowers seeking short- to mid-term financing solutions.

Senior Housing Financing:

​​The Senior Housing loan product is designed for the financing or refinancing of existing properties that serve senior citizens, including Independent Living (IL), Assisted Living (AL), Alzheimer’s/Dementia Care (ALZ), or any combination of these services (such as IL/AL/ALZ or AL/ALZ communities).

To qualify, sponsors and operators must have at least five years of experience in the senior housing sector and must own or manage a minimum of five stabilized senior housing properties. The program offers a maximum loan-to-value (LTV) ratio of 75%. Minimum debt service coverage ratio (DSCR) requirements are 1.30x for Independent Living, 1.40x for Assisted Living, and 1.45x for Alzheimer’s/Dementia Care facilities.

Supplemental:

The Supplemental Loans product offers subordinate financing for properties that already have a fixed or adjustable Fannie Mae Mortgage Loan in place for at least 12 months.
Key Features:

• Maximum Loan-to-Value (LTV): 75%
• Minimum Debt Service Coverage Ratio (DSCR): 1.30x
• Third-Party Reports: New reports may not be required
• Early Rate Lock: Available for a fee

This product provides additional funding flexibility for property owners looking to leverage existing Fannie Mae financing.

Choice Refinance Program:

The Choice Refinance product offers a simplified refinancing process with reduced documentation requirements for properties with existing DUS Cash or MBS mortgages being refinanced by the same lender. Eligible properties must be stabilized, well-maintained, and have mortgages in good standing.
This streamlined option makes refinancing quicker and more convenient for qualifying property owners.

Freddie Mac Mortgages

*A = Apartment AH = Affordable Housing MH = Manufactured Housing SH, = Senior Housing

Senior Housing Loan:

Senior housing loans are available for the acquisition or refinancing of properties such as independent living communities, assisted living facilities, skilled nursing centers, and memory care facilities. Borrowers must have prior experience owning or operating similar properties and meet certain ownership structure requirements. Loan amounts typically start at $5 million, with terms ranging from 5 to 30 years. Both fixed and variable interest rate options are available, and borrowers can often secure an advance rate lock. Properties usually need to be stabilized and meet occupancy and building standards.

Lenders consider factors like the borrower’s experience, property condition, and market outlook during the approval process. Maximum loan-to-value ratios are generally up to 75%, and minimum debt service coverage ratios depend on the property type. Most senior housing loans are non-recourse, and additional requirements may include reserves and third-party reports. Supplemental financing and flexible prepayment options are also commonly offered, providing added flexibility for property owners.

Small Balance Loans:

The Freddie Mac Small Balance Loan Program offers financing solutions for small balance mortgages, with loan amounts ranging from $1 million to $5 million. Borrowers can choose between hybrid adjustable-rate (ARM) or fixed-rate options, with both partial-term and full-term interest-only payment features available.

This program is designed for efficiency, providing a streamlined approval process and competitive pricing, making it an attractive choice for smaller multifamily property financing needs.

FHA Mortgages

*A = Apartment AH = Affordable Housing C = Cooperative H = Hospitals MC= Memory Care SH = Senior Housing SNF= Skilled Nursing Facilities

Supportive Housing for the Elderly Program – Section 202 :

Section 202 is a federal program that offers interest-free capital advances to nonprofit organizations for the construction, rehabilitation, or acquisition of supportive housing specifically for very low-income elderly individuals. These capital advances do not require repayment as long as the housing remains available to eligible residents for a designated period, making it a highly attractive source of funding for organizations aiming to expand or preserve affordable senior housing. The program is designed to encourage the development of safe, accessible, and service-enriched environments that help elderly residents maintain independence and quality of life.

In addition to funding development costs, Section 202 also provides ongoing rent subsidies to ensure that the units remain affordable to residents with limited incomes. These subsidies bridge the gap between what very low-income seniors can afford to pay and the actual cost of operating the property, allowing housing providers to maintain financial stability while serving the most vulnerable populations. Through this dual approach of capital advances and rental assistance, Section 202 plays a critical role in increasing the supply of supportive housing and addressing the growing needs of the nation’s aging population.

Supportive Housing for Persons with Disabilities – Section 811 :

Section 811 is a federal program that provides interest-free capital advances and operating subsidies to nonprofit organizations for the development of affordable, supportive housing for very low-income adults with disabilities. These capital advances can be used to finance the construction, rehabilitation, or acquisition of housing, including independent living projects, small group homes, or condominium units. The advances do not require repayment as long as the housing remains available to eligible residents for a specified minimum period, typically at least 40 years. In addition to capital funding, Section 811 offers project-based rental assistance, ensuring that tenants pay no more than 30% of their income toward rent, with the balance covered by federal subsidies. This approach allows people with disabilities to live as independently as possible in the community, with access to appropriate supportive services.

In recent years, the Section 811 program has evolved to place a greater emphasis on project rental assistance provided directly to state housing agencies, rather than traditional capital advances to nonprofits. The last federal appropriation for traditional Section 811 capital advances was made in fiscal year 2011. Since then, the focus has shifted to the Section 811 Project Rental Assistance (PRA) program, which funds state and local housing agencies to provide rental subsidies for extremely low-income persons with disabilities. This shift encourages collaboration between housing and health agencies, expands the supply of affordable, integrated housing, and supports innovative state-level strategies to address the needs of persons with disabilities.

Assisted Living Conversion Program (ALCP) :

This program offers grants to private, nonprofit owners of eligible multifamily developments who are interested in converting some or all of their existing dwelling units into Assisted Living Facilities (ALF) or Service-Enriched Housing (SEH) for elderly residents. The goal is to support aging in place by enabling seniors to remain in their communities while receiving the care and support they need. The grant can be used for necessary renovations, accessibility upgrades, and modifications to create a safe and supportive environment that accommodates the changing needs of older adults.

Assisted Living Facilities and Service-Enriched Housing created through this program must ensure that a range of supportive services is available to residents. These services typically include personal care assistance, transportation, meal provision, housekeeping, and laundry. All services must be delivered by a licensed or certified third-party provider, ensuring quality and compliance with regulatory standards. By integrating these essential supports, the program helps elderly residents maintain independence and quality of life while reducing the need for more institutional forms of care.

Demonstration Program for Elderly Housing for Intergenerational Families :

This program offers Capital Advance funding specifically to support the expansion of intergenerational housing, which is designed to serve both older adults and children, often grandparents raising grandchildren or families headed by older caregivers. The Capital Advance covers the costs associated with constructing or rehabilitating housing that meets the unique needs of these multigenerational households, including accessibility features, communal spaces, and supportive service areas. By providing this upfront funding, the program encourages the development of stable, affordable housing environments that foster connections between generations and address the social and economic challenges faced by these families.

In addition to the Capital Advance, projects funded under this program are eligible for Project Rental Assistance Contract (PRAC) funds. PRAC is designed to ensure long-term affordability by covering the gap between the HUD-approved operating costs of the property and the amount tenants can afford to pay, which is set at 30% of their adjusted monthly income. This rental assistance makes it possible for very low-income families and seniors to live in safe, supportive housing without being burdened by excessive housing costs. The combination of Capital Advance and PRAC funding helps create sustainable, service-enriched communities where intergenerational families can thrive.

Emergency Capital Repair Program (ECRP) :

This program provides grants to private, nonprofit owners of eligible multifamily developments that are designated for occupancy by elderly tenants, enabling them to make emergency capital repairs. These grants are intended to address urgent repair needs that present an immediate threat to the health, safety, or quality of life of the residents. Such repairs might include fixing critical building systems, addressing severe structural issues, or remedying hazardous conditions that cannot be covered by the project’s operating budget or other available resources. The goal is to ensure that elderly tenants are not exposed to unsafe living environments and that their continued occupancy is not jeopardized by delays in addressing these emergencies.

Eligible developments include a range of HUD-assisted housing types, such as Section 202 direct loan projects, Section 202 capital advance projects with Project Rental Assistance Contracts (PRAC), Section 515 rural housing with Section 8 rental assistance, and other properties subsidized under HUD programs for elderly occupancy. The grants are designed as one-time assistance for emergency items, ensuring that nonprofit owners can promptly initiate repairs that are vital for the well-being of their elderly residents. By providing this targeted support, the program helps preserve safe, quality housing for some of the nation’s most vulnerable seniors.