Eligible Properties

New construction or substantial rehabilitation of Nursing Homes, Intermediate Care Facilities, Board and Care Home and Assisted Living Facilities

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Borrower

Single asset and single purpose entity, either for-profit or non-profit

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Recourse

Fully non-recourse during both construction & permanent phases of financing

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Loan Amount

No limits

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Maximum Mortgage Limits

The lesser of:

a) 80% of value including major moveable equipment

b) 90% replacement costs plus land/as is value

c) 1.45 DSCR; NOI attributable to real estate only

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Fixed Assisted Living Facilities

​75% of value, including major movable equipment 1.45 DSCR, NOI attributable to real estate only
 

​Interest Rate

Fixed rate determined by market conditions at the time of rate lock

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Amortization & Term

Interest only during the construction period, plus 40 years fully amortizing

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Mortgage Insurance Premium

.77% each year during construction
.77% annually

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Escrows

Escrows for taxes, insurance, replacement reserves & mortgage insurance premium are required

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Federal Labor Standards

Federal prevailing wage & reporting requirements

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Secondary Financing

Permitted under certain conditions at closing

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Assurance Of Completion

Payment & performance bond or cash deposit/LOC

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Financing Fees

Fees Negotiable

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HUD Exam Fee

$3 per $1,000 of requested mortgage

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HUD Inspection Fee

$5 per $1,000 of requested mortgage for new construction and $5 per $1,000 of improvements cost for substantial rehabilitation

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Rate Lock Deposit

1/2% of mortgage amount, refunded at closing

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Third Party Expense Deposit

Estimated at $35,000 for market study, appraisal, architectural and costs review and environmental reports
 

​Legal And Closing Fees

Estimated to be $20,000 payable to Closing Counsel at Initial Endorsement from loan proceeds

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HUD Review Time

​45 days pre-application; 45 - 60 days firm application

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Professional Liability Insurance

​Minimum $1,000,000/$3,000,000 coverage for operators/managers

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Working Capital

Cash or LOC equal to 2.0% of the amount

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Initial Operation Deficit

Cash or LOC; if required