Refinance of existing HUD-insured senior living and healthcare loans
Refinance of an existing Nursing Home, Intermediate Care Facility, Board & Care Home or Assisted Living Facility.
The facility must already be insured under HUD’s Mortgage Insurance Program.
Eligible for up to 20% of total square footage and 20% of EGI. Commercial Space that is intended to exclusively serve the residents of the project is not counted toward the 20 percent limit
The lesser of:
a) Recommended % of LTV.
b) Recommended % of Purchase Price (If applicable).
c) Recommended Debt Service Coverage Ratio of at least 1.11.
d) Existing debt plus transaction costs and proposed repair.
The term of the new refinance loan could be up to 40-years but will not exceed the remaining term of the existing loan. However, HUD may approve a term extension providing that a longer term benefits the longevity of the project within the FHA Fund. This loan extension cannot be greater than the term of the original loan at the time it was first insured by HUD. The minimum loan term may not be less than 10 years.
Fixed rate subject to market conditions at the time of rate lock.
0.50% payable at closing, 0.55% 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.
PCNA (only if one has not been performed within the last 10-years) and a Phase I (if a building addition was made to the property without HUD approval, PCNA determined needed repairs would not qualify as routine maintenance, or if the project will or has acquired land that was not insured under the original mortgage loan). Radon Testing would also be required if a Phase I Environmental is invoked per the above noted criteria.
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 10% of the estimated cost of non-critical repairs.
$1.50 per $1,000 of requested mortgage.
No Inspection Fee
Typically 0.5% of mortgage amount, refunded at closing.
Minimum $1,000,000 / $3,000,000 coverage for operators / managers.
Refinance of an existing Nursing Home, Intermediate Care Facility, Board & Care Home or Assisted Living Facility.
The facility must already be insured under HUD’s Mortgage Insurance Program.
Eligible for up to 20% of total square footage and 20% of EGI. Commercial Space that is intended to exclusively serve the residents of the project is not counted toward the 20 percent limit
The lesser of:
a) Recommended % of LTV.
b) Recommended % of Purchase Price (If applicable).
c) Recommended Debt Service Coverage Ratio of at least 1.11.
d) Existing debt plus transaction costs and proposed repair.
The term of the new refinance loan could be up to 40-years but will not exceed the remaining term of the existing loan. However, HUD may approve a term extension providing that a longer term benefits the longevity of the project within the FHA Fund. This loan extension cannot be greater than the term of the original loan at the time it was first insured by HUD. The minimum loan term may not be less than 10 years.
Fixed rate subject to market conditions at the time of rate lock.
0.50% payable at closing, 0.55% 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.
PCNA (only if one has not been performed within the last 10-years) and a Phase I (if a building addition was made to the property without HUD approval, PCNA determined needed repairs would not qualify as routine maintenance, or if the project will or has acquired land that was not insured under the original mortgage loan). Radon Testing would also be required if a Phase I Environmental is invoked per the above noted criteria.
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 10% of the estimated cost of non-critical repairs.
$1.50 per $1,000 of requested mortgage.
No Inspection Fee
Typically 0.5% of mortgage amount, refunded at closing.
Minimum $1,000,000 / $3,000,000 coverage for operators / managers.
