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

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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

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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

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Loan Amount

No limits

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Maximum Mortgage Limits

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

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Interest Rate

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

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Amortization & Term

A maximum of 35 years fully amortizing

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Mortgage Insurance Premium

1% payable at closing, .65% annually

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Escrows

Escrows for taxes, insurance and mortgage insurance premium are required

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Replacement Reserves

Initial and monthly deposits required based on long term physical needs

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Repair Escrow

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

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Secondary Financing

Permitted up to 100% LTV under certain conditions

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Commercial Space

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

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Financing Fee

Fees Negotiable

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Placement Fee

Fees Negotiable

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HUD Exam Fee

$3 per $1,000 of requested mortgage

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HUD Inspection Fee

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

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Rate Lock Deposit

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

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Good Faith Deposit

$5,000

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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

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HUD Review Time

45 Days