Assisted Living & Nursing Care Construction and Major Rehab Loans
3% to 3.75% fixed
42 years: 2 yr interest only construction loan + 40 yr fully amortizing permanent loan
High 80% to 90% LTC up to 75% ARV
$10 Million+
- Nationwide
- No points (our fee built into interest rate)
- Rate lock deposit: 0.5% refunded at loan closing
- Non-recourse
- Prepayment flexible
- Assumable with FHA-HUD approval
- 660+ credit score
- Cumulative borrowers net worth must equal loan amount
- Cumulative liquidity: 10%+ of loan amount
- Senior healthcare construction or major rehab experience on title required
- Must close in single asset, special purpose LLC, Corporation or Partnership
- Must provide continuous protective oversight, 3 meals/day, state licensed, non-resident care up to 20% of gross area & income, up to 25% non-licensed independent living units and commercial space to 10% of gross floor area & income
- HUD requires Davis Bacon wages
- Escrows: (1) prior to construction: reserves for interest, taxes, insurance, working capital (4% of loan) + initial operating deficit; balances released to borrower after 6 consecutive months of break-even operations; (2) Post construction: taxes, insurance and mortgage insurance premium escrowed monthly & capital needs reserve monthly deposits in accordance per HUD guidelines
- Mortgage insurance premium: 0.77% at closing then annually until principal repaid
- HUD application fee: 0.30% of loan due with submission of final loan application
- Third party reports: appraisal, market study, environmental and review of final construction & architectural docs by FHA-HUD approved reviewer
- 1st lien mortgage
- Closes 12+ months after receive loan docs
- To get started, please click blue Senior Healthcare Construction and Major Rehab Link for FREE PRE APPROVAL LOI within 48 business hours. With a few clicks it TAKES LESS THAN 6 MINUTES. No credit cards, Social Security Numbers or credit checks are required.
