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Fannie Mae Seniors Housing Loans | Haven Senior Investments
Capital Solutions · GSE Programs

Fannie Mae Seniors
Housing Loans — Non-Recourse
Agency Financing

Fannie Mae's Seniors Housing program provides long-term, non-recourse, assumable financing for stabilized independent living, assisted living, and memory care communities. Competitive fixed and variable rates, up to 80% LTV, 30-year amortization. Haven connects experienced senior housing borrowers to approved DUS lenders.

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$5M+
Minimum loan size
80%
Maximum LTV
30 yr
Max amortization
Non-recourse
Standard execution
Fannie Mae Seniors Housing — At a Glance
Minimum loan$5,000,000 (exceptions possible)
Max LTV80% standard / 75% cash-out refi
DSCR (IL)1.30x minimum
DSCR (AL/MC)1.40x – 1.45x
Loan term5–30 years
AmortizationUp to 30 years
Rate typesFixed and variable
RecourseNon-recourse (standard carve-outs)
AssumableYes — 1% fee + lender approval
Rate lock30–90 day; early lock up to 365 days
SupplementalAvailable
ConstructionNot available — stabilized only
Delivered throughApproved DUS Lenders only
Sponsor experience5+ years, 5+ stabilized properties
Program Overview

Fannie Mae's Seniors Housing
Financing Program

Fannie Mae's Seniors Housing program is one of the primary sources of long-term, non-recourse agency debt for stabilized independent living, assisted living, and memory care communities. Delivered through the Delegated Underwriting and Servicing (DUS) lender network — a select group of lenders approved and trained by Fannie Mae — the program provides customized pricing and flexible structuring for experienced senior housing sponsors.

Unlike SBA programs, Fannie Mae seniors housing is designed for institutional and experienced operators — not first-time buyers. The minimum loan size of $5 million, the 5-year / 5-property operator experience requirement, and the 90% occupancy seasoning threshold all reflect a program built for stabilized, professionally managed communities.

The program covers acquisitions and refinancing of existing stabilized properties — including both fixed- and variable-rate structures, supplemental loan availability, and rate lock flexibility that accommodates extended closing timelines typical of agency executions.

Critical — Construction Not Available
Fannie Mae provides debt for existing, stabilized, purpose-built seniors housing properties only. Construction financing is not available through this program. Properties must meet occupancy seasoning requirements before applying.
Eligible Property Types
Eligible
IL
Independent Living
Age-restricted communities providing limited programs of assistance — meals, housekeeping, activities, transportation. Units typically resemble conventional apartments. Lowest DSCR requirement (1.30x).
Eligible
AL
Assisted Living
Communities providing non-medical personal care and Activities of Daily Living (ADL) assistance — medication management, bathing, dressing, toileting, ambulating. Licensed and regulated by state authority.
Eligible
ALZ / MC
Alzheimer's & Memory Care
Secured, specialized communities for residents with Alzheimer's and dementia. Highest DSCR requirement (1.45x for 100% ALZ/MC). Requires Regulatory Compliance Report at licensed facilities.
Eligible
CCRC
Continuing Care Retirement Communities
Campus communities combining IL, AL, MC, and often skilled nursing under one ownership. Fannie Mae finances combinations of all care types — aging-in-place communities. Entrance fee component typically present.
Limited
SNF
Skilled Nursing
Fannie Mae does not purchase mortgage loans secured by 100% Skilled Nursing. SNF units may not contribute more than 20% of the property's overall Net Cash Flow (NCF) for the loan to remain eligible.
Not Eligible
Age-Restricted Only
55+ Age-Restricted without Services
Properties that are age-restricted (55+) but do not provide care services — no meals, no ADL assistance — are not eligible for the Seniors Housing program. These properties use conventional multifamily loan programs.
DSCR & LTV Requirements

Debt Service Coverage
Varies by Property Type

Fannie Mae's DSCR requirements for seniors housing are tiered by property type — reflecting the relative risk and operational complexity of each care level. Memory care and assisted living carry higher DSCR minimums than independent living due to their higher operational leverage and regulatory exposure.

For mixed-use communities combining IL and AL/ALZ, special rules apply — the minimum DSCR is a weighted average based on the proportion of each care type's contribution to Net Cash Flow. Confirm exact DSCR requirements for your specific property mix with your DUS lender.

Property TypeMax LTVNotes
Standard acquisition80%Standard maximum — stabilized, qualified sponsor
Cash-out refinance75%LTV reduced 5% for cash-out transactions
Higher risk profilesLowerDUS lender may apply further LTV constraints based on occupancy, market, or operator profile
IL Only
Independent Living
1.30x
Minimum DSCR for 100% independent living communities. Lower requirement reflects lower regulatory complexity and more apartment-like operations.
50%+ AL or ALZ
Assisted Living Majority
1.40x
Minimum DSCR when 50% or more of NCF comes from assisted living or Alzheimer's/dementia care units. Higher requirement reflects operational and regulatory risk.
ALZ/MC Only
100% Memory Care
1.45x
Highest DSCR minimum — for communities with 100% Alzheimer's or dementia care. Maximum regulatory oversight, staffing intensity, and operational complexity.
Mixed Property
IL + AL/ALZ Combination
Wtd.
Weighted average of 1.30x and 1.45x based on each component's share of NCF. Special calculation rules apply — verify with DUS lender for your specific mix.
Occupancy Seasoning

Stabilization Requirements
Before Applying

Fannie Mae requires that seniors housing properties demonstrate a minimum period of sustained occupancy before a loan can be originated. This occupancy seasoning requirement reflects the program's focus on stabilized, established communities — not lease-up or value-add properties.

Properties that have not yet achieved and sustained 90% economic occupancy for the required period are not eligible for Fannie Mae seniors housing financing. Bridge or conventional financing should be used to carry the property through stabilization before an agency refinance is pursued.

Independent Living
IL Communities
90%
Economic occupancy sustained for 12 months
Independent living requires 12 consecutive months at or above 90% economic occupancy — the shorter seasoning period reflects lower operational complexity relative to licensed care communities.
Assisted Living & Memory Care
AL / ALZ / MC Communities
90%
Economic occupancy sustained for 15 months
Assisted living and memory care communities require 15 consecutive months at or above 90% economic occupancy — the longer seasoning period reflects the higher operational complexity and regulatory oversight of licensed care facilities.
Third-Party Report Requirements

Required Reports for
All Seniors Housing Transactions

Fannie Mae's seniors housing program requires more extensive third-party reporting than conventional multifamily loans — reflecting the complexity of care operations and the regulatory environment. Borrowers should factor both the cost and timeline of these reports into their transaction schedule.

All Properties
Appraisal
A full narrative appraisal of the property — including income approach, sales comparison, and cost approach — prepared by a licensed appraiser with demonstrated seniors housing experience. Fannie Mae has specific appraisal format and methodology requirements for licensed care facilities.
All Properties
Phase I Environmental Site Assessment
Standard Phase I ESA identifying recognized environmental conditions at the property. If the Phase I identifies concerns, a Phase II assessment may be required before the loan can proceed. Older senior housing buildings may carry elevated environmental risk from historical use.
All Properties
Physical Needs Assessment
A Property Condition Assessment (PCA) evaluating the current physical condition of the building, systems, and major components — and establishing required replacement reserves. The reserve requirement will be funded at closing based on PCA findings.
All Properties
Management & Operations Consultant Report
A consultant's report on management quality and operations is required for all seniors housing property types — not just licensed facilities. This report evaluates the operator's systems, staff, census management, and overall operational quality. One of the most Fannie Mae-specific requirements.
Licensed Properties Only
Regulatory Compliance Report
Required for all licensed seniors housing properties — assisted living, memory care, and skilled nursing units. Evaluates compliance with state licensing requirements, recent survey results, deficiency history, and pending regulatory actions that could affect the property's license or operational status.
Ongoing
Replacement Reserve, Tax & Insurance Escrows
Fully funded replacement reserves are required and sized based on the PCA findings. Tax and insurance escrows are required for the life of the loan. These escrows are maintained by the DUS servicer and are not discretionary — they are standard conditions of Fannie Mae agency execution.
Complete Terms Reference

Fannie Mae Seniors Housing
Full Term Sheet

Loan Structure
Minimum loan size$5,000,000 (exceptions on individual basis)
Loan term5–30 years
AmortizationUp to 30 years
Max LTV — acquisition80%
Max LTV — cash-out refi75% (reduced 5%)
Min DSCR — IL1.30x
Min DSCR — AL (50%+ AL/ALZ)1.40x
Min DSCR — 100% ALZ/MC1.45x
RecourseNon-recourse (standard carve-outs)
Supplemental financingAvailable
Pricing, Prepayment & Process
Interest rateFixed and variable; customized pricing
Rate lock30–90 day standard; early lock up to 365 days
AssumabilityYes — 1% fee + lender and Fannie Mae approval
PrepaymentYield maintenance; graduated step-down options
Day countActual/360 or 30/360
Commercial space limitMax 10% of NRA and 10% of EGI
SNF NCF limitMax 20% of property's overall NCF
Construction financingNot available — stabilized only
Typical timeline6 months to 1 year (agency execution)
Geographic coverageAll 50 states, Puerto Rico, U.S. territories
Underwriting Considerations

What Fannie Mae DUS Lenders
Evaluate Beyond the Numbers

In addition to DSCR and LTV compliance, DUS lenders evaluating a seniors housing loan request will assess these qualitative factors — which often determine whether a loan is approved, how it is priced, and what conditions are attached.

01
Positive Operational Trend
Lenders examine financial and operational performance over multiple years — looking for consistent or improving occupancy, revenue, and NOI. A declining trend, even from a still-strong baseline, raises underwriting concern. Properties with census recovery stories need to demonstrate sustained stabilization, not merely recent improvement.
02
Business Plan & Operator Capability
Borrowers must demonstrate an intimate understanding of the business and the seniors housing sector. A realistic, data-grounded business plan with modest, defensible growth assumptions is preferred over aggressive projections. Lenders want to see a management team capable of executing the plan — not just owning the asset.
03
Management Continuity & Transition Plan
For acquisitions, commitments from existing managers, key staff, and referral source relationships to continue under new ownership represent material risk reduction. A detailed seller training and transition plan — typically 1–12 months — should be negotiated before closing and documented in the purchase agreement.
04
Regulatory Compliance History
For licensed facilities, the Regulatory Compliance Report will reveal state survey history, deficiency citations, and any pending enforcement actions. Significant or repeated citations — particularly those involving resident care quality — can be disqualifying or require significant remediation as a condition of loan approval.
05
Operator Track Record & Financial Strength
The operator's financial position — not just the borrowing entity — is evaluated. Lenders look for operators with adequate liquidity, positive net worth, and a history of successful seniors housing operation. Operators in financial stress at their other properties create underwriting risk for the loan in question.
06
Market Position & Competitive Dynamics
The property's position within its competitive market — occupancy relative to peers, pricing vs. alternatives, referral source depth, and exposure to new supply — is assessed in the Management & Operations Consultant Report and the Appraisal. Market-leading occupancy in a growing demographic area supports pricing; a weak competitive position requires explanation.
Execution & Timeline

Agency Execution Takes
Time — Plan Accordingly.

Fannie Mae seniors housing loans involve more complexity than conventional commercial mortgages — multiple third-party reports, management and operations reviews, regulatory compliance evaluations, and DUS lender coordination with Fannie Mae's seniors housing deal team. Plan for 6 months to 12 months from application to closing in most cases.

Haven advises borrowers to begin the agency financing process well before their bridge loan maturity or rate lock expiration — and to use Fannie Mae's early rate lock feature strategically to manage interest rate risk during the extended timeline.

The Timeline Tradeoff: Fannie Mae's extended timeline relative to conventional financing is the primary tradeoff of agency execution. The benefits — non-recourse structure, assumability, competitive long-term fixed rates, and 30-year amortization with no balloon — typically justify the additional time for stabilized, qualified senior housing assets.
Month 1
DUS Lender Introduction & Preliminary Screening
Haven introduces you to approved DUS lenders with seniors housing experience. Preliminary credit and deal screening — DSCR, LTV, occupancy, operator experience — to confirm eligibility before committing to full application
Month 1–2
Third-Party Report Ordering
All required third-party reports ordered simultaneously — Appraisal, Phase I, PCA, Management & Operations Consultant Report, and Regulatory Compliance Report (if licensed). Report procurement is typically the critical path
Month 2–4
Underwriting & DUS Lender Credit Approval
DUS lender underwrites the loan using completed reports and borrower financial package. For standard transactions, DUS lenders have delegated authority to approve without Fannie Mae pre-review — this is the key advantage of DUS execution
Month 3–5
Rate Lock & Commitment
30–90 day rate lock standard. Early rate lock available — allowing the borrower to lock 45 to 365 days in advance of closing. Rate lock commitment issued by DUS lender
Month 5–12
Closing & Loan Delivery to Fannie Mae
Loan closes under DUS lender's name. DUS lender delivers the loan to Fannie Mae — who purchases the mortgage from the lender. Fannie Mae's seniors housing asset management team assumes ongoing oversight post-closing
Haven Capital Solutions

Haven Connects Senior Housing
Borrowers to DUS Lenders

Haven Senior Investments is a capital broker — not a lender. We have no financial interest in which program or lender you use. Our role is to understand your property, confirm your eligibility for Fannie Mae seniors housing financing, and introduce you directly to DUS lenders with verified seniors housing experience and approval to originate seniors housing loans.

Not all DUS lenders are approved for seniors housing. Haven's capital network is filtered for lenders who understand the asset class, have completed senior housing transactions, and know how to navigate the Management & Operations Consultant Report and Regulatory Compliance Report requirements specific to this program.

Eligibility pre-screening
Haven confirms DSCR, LTV, occupancy seasoning, and operator experience qualifications before any lender introductions — avoiding wasted time on transactions that won't qualify
DUS lender introductions — seniors housing approved
Direct introductions to DUS lenders with Fannie Mae approval specifically for seniors housing — not generic multifamily lenders who occasionally see care facility applications
Program comparison — Fannie Mae vs. alternatives
Haven evaluates whether Fannie Mae is the best execution for your property and timeline — or whether HUD 232, bridge-to-agency, or conventional financing is more appropriate
Process support through closing
Haven stays engaged through the third-party report process, underwriting, and closing — helping manage the extended timeline and ensuring no documentation gaps create delays
Fannie Mae Seniors Housing Inquiry
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Respond within one business day. Strict confidentiality, no obligation. Senior housing only.
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Haven Senior Investments · Capital Broker · Senior Housing Only

Explore All Senior Housing
Financing Programs
Fannie Mae is one program. Haven also connects borrowers to HUD 232, Freddie Mac, USDA B&I, SBA 7(a), bridge debt, and preferred equity — finding the right execution for your specific asset and timeline.
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