top of page

HUD 232

per 223(f)

Acquisitions or Refinancing of Nursing Homes, Intermediate Care Facilities, Board & Care Home & Assisted Living Facilities

Eligible Properties

The facility must have been completed or substantially rehabilitated at least three (3) years prior to the date of the Firm Commitment application

Borrower

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

Recourse

Fully non-recourse

Loan Amount

No limits

Maximum Mortgage Limits

The lesser of:
a) 80% LTV
b) 100% transaction costs (refinance); 85% transaction costs (purchase)
c) 1.45 DSCR

Interest Rate

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

Amortization & Term

A maximum of 35 years fully amortizing

Mortgage Insurance Premium

1% payable at closing, .65% annually

Escrows

Escrows for taxes, insurance and mortgage insurance premium are required

Replacement Reserves

Initial and monthly deposits required based on long term physical needs

Repair Escrow

Cash or a letter of credit for up to 20% of the estimated cost of repairs

Secondary Financing

Permitted up to 100% LTV under certain conditions

Commercial Space

Eligible for up to 20% of total square footage and 20% EGI

Financing Fee

Fees Negotiable

Placement Fee

Fees Negotiable

HUD Exam Fee

$3 per $1,000 of requested mortgage

HUD Inspection Fee

1% of the estimated cost of repairs or $30 per unit/bed

Rate Lock Deposit

Typically 1/2% of mortgage amount, refunded at closing

Good Faith Deposit

$5,000

Third Party Expense Deposit

Appraisal, Phase 1, Property Condition & Needs Assessment are estimated at $22,500, collected at application
 

Legal Fees

Lender legal fees estimated at $17,500

​​

HUD Review Time

45 Days

bottom of page