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Assisted Living & Skilled 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

$20 Million+ Preferred

$10 Million to $20 Million for strong sponsors with FHA-HUD experience

  • Nationwide
  • No points (our fee built into interest rate) 
  • No upfront fees underwriting pricing and sizing loans; no application or 3rd party fees (such as appraisals) until borrower signs FHA-Hud, Fannie Mae or Freddie Mac terms sheet
  • Rate locks 2 months before funding; can rate lock early by paying a one time, nonrefundable payment of 3 to 6 BPS per month (borrower chooses # of months to rate lock)
  • Non-recourse
  • Prepayment flexible
  • Assumable with FHA-HUD approval
  • 660+ credit score
  • Cumulative liquidity must cover “cash to close” (combined for all key principals)
  • Senior healthcare experience on title required and must own 20% of borrowing entity
  • May hire HUD approved general contractor to build project 
  • 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.
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