Senior Housing – Loan Underwriting Guidelines
Please incorporate the below minimum guidelines when you prepare and submit your proforma for underwriting approval:
| Rental Income: | Current rent roll annualized with vacancy at market rents | |
|---|---|---|
| (+) | Other Income: | Must be supported by historical collections |
| (-) | Vacancy: | Equal to the greater of the actual vacancy plus 1% credit loss |
| (-) | Management Fee: | Equal to the greater of the actual management fee of 5% Operating ExpensesShould be supported by previous two (2) years and current year-to-date expenses. |
| (-) | Capital Reserves: | Typically $2.50 per bed minimum depending upon property age and condition |
| Equals: | Net operating income |