| Property Types: |
Acute Care Hospital (at least 50% of total patient days must come from acute care services except for critical access hospitals) |
| Eligible Borrowers: |
For profit and non-profit entitiesHospital must demonstrate need (obtain CON if required by the state) |
| Loan Amount: |
No Minimum/Maximum-Statutory Mortgage Limits (adjusted for locality) |
| Region: |
Nationwide |
| Term & Amortization: |
Up to 25 years and fully amortizing |
| General Loan Terms: |
Loan requirements consist of:
- Maximum 90% Loan to Value
- Past three years average operating margin greater than 0
- Past three years average DSCR greater than 1.25x
|
| Interest Rate: |
Fixed rate subject to market conditions at the time of rate lock. |
| Recourse: |
None except standard carve outs |
| Assumable: |
Yes, subject to HUD approval. |
| Prepayment: |
Negotiable. Typically loans are prohibited from prepayment for the first 2 years then an 8% penalty declining 1% each year thereafter until 0% |
| Mortgage Insurance Premium: |
1% upfront and .5% annually |
| Other: |
- Davis Bacon prevailing wages are required for new construction and substantial rehabilitation
- 20% of the mortgage amount may be used for capital improvements and equipment
- Escrows required for repairs, mortgage insurance premium, taxes, insurance and replacement reserves
- Third parties include an appraisal, property condition, needs assessment and Phase I
|
