Loan Programs 232

232/223(f)
PURCHASE & REFINANCE OF HEALTH CARE FACILITIES

NURSING HOMES
ASSISTED LIVING FACILITIES
  • Up to 35 Years Fixed Rate/Fully Amortized
  • Fully Assumable
  • No Personal Liability
Maximum Loan is the Lesser of:
  1. For Purchase:
    85% of cost of acquisition that includes:

    1. Purchase Price
    2. Repairs
    3. Financing Cost
    4. Initial Deposit to Reserve for Replacement
  2. For Refinance:
    100% of Allowable Cost to Refinance that includes:

    1. Payoff Existing Mortgage
    2. Repairs
    3. Financing Cost
    4. Initial Deposit to Reserve for Replacement
  3. 85% Debt Service Mortgage – The mazimum loan that can be supported by 85% of projected Net Operating Income
  4. 85% of Appraised Value as Repaired
Non-mortgagable Cost
  • 50% of estimated repairs (Letter of Credit or Cash)
    – Held until repairs are complete.
  • Tax and Insurance Escrow
  • One Month MIP Escrow
TYPICAL PROCESSING STEPS
Firm Application (HUD Review 60 days)
Exhibits include but not limited to:
  • Market Study
  • Appraisal
  • Credit Information on all sponsors/mortgagors
  • Verified working capital sufficient to meet all closing obligations including letters of credit
  • Project Capital Needs Assessment determining repairs and Reserve for Replacement amounts
  • Phase I Environmental Site Assessment