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HUD 232 per 223(f) — Nursing Homes, Intermediate Care Facilities, Board and Care Home and Assisted Living Facilities
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| Eligible Properties: |
The facility must have been completed or substantially rehabilitated at least three (3) years prior to the date of the Firm Commitment application. |
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| Borrower: |
Single asset and single purpose entity, either for-profit or non-profit |
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| Recourse: |
Fully non-recourse |
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| Loan Amount: |
No limits |
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| Maximum Mortgage Limits: |
| The lesser of: |
| a. |
85% LTV (90% LTV non-profit) |
| b. |
100% transaction costs (refinance); 85% transaction costs (purchase); 90% transaction costs (non-profit) |
| c. |
1.1765 DSCR; 1.11 DSCR (non-profit Mortgager) | |
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| Interest Rate: |
Fixed rate determined by market conditions at the time of rate lock |
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| Amortization and Term: |
A maximum of 35 years fully amortizing |
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| Mortgage Insurance Premium: |
1% payable at closing, .5% annually |
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| Escrows: |
Escrows for taxes, insurance and mortgage insurance premium are required |
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| Replacement Reserves: |
Initial and monthly deposits required based on long term physical needs |
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| Repair Escrow: |
Cash or a letter of credit for up to 20% of the estimated cost of repairs |
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| Secondary Financing: |
Permitted up to 100% LTV under certain conditions |
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| Commerical Space: |
Eligible for up to 20% of total square footage and 20% EGI |
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| Origination Fee: |
Fees negotiable |
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| Placement Fee: |
Fees negotiable |
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| HUD Exam Fee: |
$3 per $1000 of requested mortgage |
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| HUD Inspection Fee: |
Greater of 1% of the estimated cost of repairs or $30 per unit/bed |
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| Good Faith Deposit: |
Typically 1/2% of mortgage amount, refunded at closing |
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| Application Fee: |
$5,000 |
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| Third Party Expense Deposit: |
Market Study, Appraisal, Phase I, Property Condition and Needs Assessment are estimated at $22,500, collected at application |
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| Legal Fees: |
Lender legal fees estimated at $12,500 |
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| HUD Review Time: |
60 days |
