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.
