Refinance & Cash-Out Healthcare Property Loans
2.75% Fixed Interest Rate
Term: 35 years fully or 75% of the remaining economic life amortizing
With interest rates at historic lows, securing a low rate immediately increases property cash flow and will maximize appreciation as interest rates increase over time.
$3 Million to $250 Million+ per property
Eligible properties: Licensed Nursing Homes, Assisted Living, Intermediate Care and Board & Care
a) Must provide continuous protective oversight.
b) Must offer three meals per day.
c) Must be state licensed.
d) Non-resident day care not to exceed 20% of gross area and 20% of gross income.
e) May include up to 25% non-licensed independent living units.
f) 3 years since last certificate of occupancy issued
Commercial Space: Limited to 20% of net rentable area and 20% of effective gross income.
Borrower: Single asset, special purpose entity, either for profit or non-profit.
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Prepayment and Assumption: Negotiable with best pricing for 10 years of call protection (combination of lockout and/or penalty); Loan is fully assumable subject to HUD approval.
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.
Mortgage Insurance Premium: 1% due to HUD at closing and 0.65% annually thereafter (0.45% for qualifying LIHTC projects), escrowed monthly.
HUD Application Fee: 0.30% of estimate loan amount due 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 Assessment.
Timeline: Typical application submitted within 60 days of engagement; processing time varies on OCRF (Office of Residential Care Facilities) volume.
No balloon payments will ever come due
Get Your Free Healthcare Loan PRE-APPROVAL LOI in 24 Business Hours by clicking the blue Healthcare Loan Link. Will take you less than 4 minutes to click through. No upfront fees, Social Security Numbers, credit checks or credit cards are required.