Refinance or Acquisition of Nursing Homes, Intermediate Care Facilities, Board & Care, and Assisted Living Facilities
Refinance or acquisition of an existing Nursing Home, Intermediate Care Facility, Board & Care Home or Assisted Living Facility having no less than 20 units/Beds.
The facility must have been completed or substantially rehabilitated at least three (3) years prior to the date of the Firm Commitment application.
Eligible for up to 20% of total square footage and 20% of EGI.
The lesser of:
a) Recommended % of LTV.
b) Recommended % of Purchase Price.
c) Recommended Debt Service Coverage Ratio.
d) Existing debt plus transaction costs and proposed repairs.
Based on current economic and fiscal environment, HUD has recommended the following parameters:
Skilled Nursing and Assisted Living: 80% LTV, 1.45 DSCR.
For Board and Care and Independent Living: 80% LTV, 1.45 DSCR.
For Non-Profit Mortgagors: 85% LTV, 1.45 DSCR.
*Other than the above constraints, there are no minimum or maximum loan sizes.
A maximum term of the lesser of 35 years fully amortizing or 75% of remaining economic life.
Fixed rate subject to market conditions at the time of rate lock.
1% payable at closing, 0.65% annually (0.45% for affordable) – Subject to change by HUD.
Non-recourse.
Fully assumable, subject to HUD approval.
Negotiable. Best rates typically have 1-2 year lockout with declining prepayment penalty for remainder of first 10 years.
Appraisal, Phase I, Radon, Property Condition & Needs Assessment (PCNA).
Escrows for taxes, insurance and mortgage insurance premium are required.
Initial and monthly deposits required based on long term physical needs.
Cash or a letter of credit for up to 20% of the estimated cost of repairs.
$3 per $1,000 of requested mortgage.
$2 per $1,000 of requested mortgage.
Greater of 1% of the cost of repairs or $30 per bed.
Typically, 0.5% of mortgage amount, refunded at closing.
Minimum $1,000,000 / $3,000,000 coverage for operators / managers.
Refinance or acquisition of an existing Nursing Home, Intermediate Care Facility, Board & Care Home or Assisted Living Facility having no less than 20 units/Beds.
The facility must have been completed or substantially rehabilitated at least three (3) years prior to the date of the Firm Commitment application.
Eligible for up to 20% of total square footage and 20% of EGI.
The lesser of:
a) Recommended % of LTV.
b) Recommended % of Purchase Price.
c) Recommended Debt Service Coverage Ratio.
d) Existing debt plus transaction costs and proposed repairs.
Based on current economic and fiscal environment, HUD has recommended the following parameters:
Skilled Nursing and Assisted Living: 80% LTV, 1.45 DSCR.
For Board and Care and Independent Living: 80% LTV, 1.45 DSCR.
For Non-Profit Mortgagors: 85% LTV, 1.45 DSCR.
*Other than the above constraints, there are no minimum or maximum loan sizes.
A maximum term of the lesser of 35 years fully amortizing or 75% of remaining economic life.
Fixed rate subject to market conditions at the time of rate lock.
1% payable at closing, 0.65% annually (0.45% for affordable) – Subject to change by HUD.
Non-recourse.
Fully assumable, subject to HUD approval.
Negotiable. Best rates typically have 1-2 year lockout with declining prepayment penalty for remainder of first 10 years.
Appraisal, Phase I, Radon, Property Condition & Needs Assessment (PCNA).
Escrows for taxes, insurance and mortgage insurance premium are required.
Initial and monthly deposits required based on long term physical needs.
Cash or a letter of credit for up to 20% of the estimated cost of repairs.
$3 per $1,000 of requested mortgage.
$2 per $1,000 of requested mortgage.
Greater of 1% of the cost of repairs or $30 per bed.
Typically, 0.5% of mortgage amount, refunded at closing.
Minimum $1,000,000 / $3,000,000 coverage for operators / managers.
