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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.

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