Assisted Living and Nursing Home Cash-Out, Refinance and Purchase Loans
FHA-HUD 232/223(f)
Nationwide
$3.5 Million to $100 Million+ per property
2.4% to 2.75% fixed 35 yrs or 75% of the remaining economic life both fully amortizing.
Prepayment and Assumption
Rate lock deposit 0.5% refunded @closing.
Our fee is built into the interest rate
Term: 35 years fully or 75% of the remaining economic life amortizing
Finance 80 to 90% of purchase price (Fast Track closes in 45 days)
Refinance or Refi Cash-Out 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 sized senior healthcare project last 3 years
(2) Net worth must equal loan amount (combined all key principals)
(3) Liquidity must equal 10% of loan amount (combined all key principals)
(4) 660+ credit
(5) No bankruptcy, foreclosure or short sales in last 3 years
(6) Borrower: single asset LLC, Corporation or Partnership
(7) No tax returns required
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.
Mortgage Insurance Premium: 1% due 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 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: Typical application submitted within 60 days of engagement; processing time varies on OCRF (Office of Residential Care Facilities) volume.
Eagle is a correspondent lender for largest FHA-HUD Commercial Lender in USA. We close more than half of all FHA-HUD Commercial loans and rank top 10 for Fannie Mae and Freddie MAC.
Get Your Free Healthcare Loan PRE-APPROVAL LOI in 48 business hours by clicking the blue PRE-APPROVAL Healthcare Loan Link. Will take you less than 6 minutes to click through. No upfront fees, Social Security Numbers, credit checks or credit cards required.
