Assisted Living and Skilled Nursing Facilities
2.75% fixed for 35 years or 75% of remaining economic life
FHA-HUD 232/223(f)
Mortgage insurance premium: 1% at closing and 0.65% annually thereafter
Fully amortizing
For cash-out, refinance or acquisition
Nationwide
No Tax returns or income verification required
$5 Million to $100 Million+
Rate lock deposit 0.5% refunded @closing.
Our fee is built into the interest rate
Refinance. cash-out finance purchase at 80% of appraised value
No balloons
Non-recourse
Assumable
Prepayments: none after 10 years
Borrower requirements:
(1) Must have been on title 2+ years for similar healthcare project in last 3 years
(2) Liquidity must equal cash to close (combined all key principals)
(3) 660+ credit
(4) No bankruptcy, foreclosure or short sales in last 3 years
(5) Borrower: single asset LLC, Corporation or Partnership
Occupancy requirements: 6 months 85%+ average occupancy with last 3 months trending up
May take surplus cash distributions from operating account twice/year
Eligible properties: Licensed Nursing Homes, Assisted Living, Intermediate Care and Board & Care
a) Must provide continuous protective oversight.
b) Must offer 3 meals per day.
c) Must be state licensed.
d) Non-resident day care up to 20% of gross area and income.
e) May include up to 25% non-licensed independent living units.
f) 3 years must have passed since last certificate of occupancy issued
Commercial Space: up to 20% of net rentable area and gross income
| Borrower Type | Maximum Loan to Value | Minimum Debt Service Coverage |
Maximum Loan to Refinance Cost |
Maximum Loan to Acquisition Cost |
| For-Profit | 80% | 1.45x | 100% | 80% |
| Not-for-Profit | 85% | 1.45x | 100% | 90% |
Escrows: Capital needs reserve will be maintained with monthly deposits in accordance with HUD guidelines on a property-specific basis.
Professional Liability Insurance: HUD requires minimum coverage of $1 million per occurrence; $3 million aggregate with a max deductible of $25,000. Waivers may be granted in cases where premiums are high and claim history is clean.
HUD Application Fee: 0.30% of estimate loan amount with submission of application (0.20% for properties in a qualified Opportunity Zone).
HUD Inspection Fee: Greater of $30 per unit/bed or 1% of repairs.
Third party reports: appraisal, environmental and capital needs sssessment.
Timeline: Typically closes in 6 months+
No upfront fees
To submit your online loan request, clicking the blue GET STARTED Link for your PRE-APPROVAL Term Sheet within 48 business hours. No upfront fees, Social Security Numbers, credit checks or credit cards are required for PRE-APPROVAL.
