HUD 232/223(f) Loan - Acquisition or Refinance of Healthcare Facilities
Licensed skilled nursing and rehabilitation, assisted living, memory care, intermediate care, and board and care facilities with limited independent living units.
Single-asset, special purpose entities, either for-profit or non-profit.
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.
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.
|Mortgage Insurance Premium||
1% at closing,
Fully assumable, subject to HUD approval.
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.