HUD 232/223(f) Loan - Acquisition or Refinance of Healthcare Facilities

Eligible Properties | Licensed skilled nursing and rehabilitation, assisted living, memory care, intermediate care, and board and care facilities with limited independent living units. |
Eligible Borrowers | Single-asset, special purpose entities, either for-profit or non-profit. |
Location | Nationwide. |
Loan Amount | No minimum/no maximum (subject to General Loan Parameters). |
General Loan Parameters | Maximum loan amount:
Please note, the maximum LTV and allowable acquisition costs may be increased by 5% for non-profit borrowing entities.
|
Interest Rate | Fixed-rate, subject to market conditions at time of rate lock. |
Term & Amortization | Up to 35 years or 75% of the remaining useful life of the property, fully amortizing. |
Liability | Non-recourse. |
Mortgage Insurance Premium | 1% at closing, |
Assumability | Fully assumable, subject to HUD approval. |
Prepayment | Typically loans are prohibited from prepayment for the 1st year, then have a 9% penalty declining 1% each year thereafter until 0%. Alternative lockout and prepayment structures are available. |
Professional Liability Insurance | HUD requires a minimum coverage of $1 million per occurrence and $3 million in aggregate. Waivers may be granted in cases where premiums are high and claims history is clean. |
Other |
|