"ACQUISITION AND REFINANCING" OF

ASSISTED LIVING FACILITIES AND SKILLED NURSING FACILITIES

 FHA Section 232/223(f) Mortgage Insurance Program

(401) 525-6544

Back to HUD Financing

Eligible Projects:

Skilled nursing, assisted living facilities, intermediate care, board and care home or a combination of one or more.

Not Eligible

Independent living facilities, treatment centers, halfway houses and projects with entrance fees.

Requirements

Existing projects, at least three years old, with no more than minimal levels of  repair required and with no substantial rehabilitation within the past three years.

  • Facility must provide continuous protective oversight of residents and offer three meals per day.
  • Facility must be licensed by the state in which it is located.
  • No more than 25% of units in a board and care home can be independent living units (units with complete kitchen and bath facilities).
  • Nonresident day care may not exceed 20% of gross floor area or 20% of gross income.
  • Commercial space that does not exclusively serve residents is limited to 20% of gross floor area and 20% of gross income.

Loan Parameters

The maximum loan amount is the least of:

  • 85% of appraised value (90% if Borrower is a non-profit)
  • Loan amount that would achieve a debt service coverage ratio of 1:18 to 1.0 (1:11 to 1.0 if Borrower is a non-profit).
  • Refinancing: 100% of outstanding debt plus transaction costs and proposed repairs.
  • Acquisition: 85% of the acquisition price plus transaction costs and proposed repairs  (90% of acquisition price if Borrower is a non-profit).

 An equity take out is prohibited under this program. 

Interest Rate The interest rate is fixed for the term of the loan. Currently 4.75% (9-10-09)

Term and Amortization   Maximum term of 35 years; loan will fully amortize over term.

Recourse   Non-recourse

Assumable  Loan is assumable, subject to HUD approval and payment of an assumption fee and related transaction expenses

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  Winthrop Financial Solutions, LLC
1240 Pawtucket Ave, Rumford, RI 02916

Howard L. Weldon

(Direct) 401-525-6544
 (Fax) 888-679-0773
   hweldon301@msn.com