Our Assisted Living financing commercial loan programs help those seeking to acquire or refinance an established healthcare facility.
We provide financing options for a wide variety of facilities which includes:
Assisted Living
Seniors Housing
Independent Care Centers
Skilled Nursing
Alzheimer's or Memory Care Facilities
Psychiatric Facilities
For Profit and Not for Profit Hospitals
Assisted Living Facility Commercial Financing From $500,000
Loan Collateralized by Commercial Real Estate - Business Only Financing not available
Acquisition or Refinance of Established Facilities
Fannie Mae and FHA Loan Programs Available
3, 5, 10, 15 Year Fixed Rates
15, 20, 25, & 30 Year Amortizations
Flexible Prepayment Choices
80% LTV - Subordinate Debt OK
Full Documentation - Recourse (Yes & No)
Credit Score Minimum of 660
Income of 3 Years for Property Required
Minimum 1.40 DSCR
Government financing with HUD/FHA 232 Mortgage Loan programs
Fannie Mae Seniors Housing Program
Eligible Properties:
Must be a dedicated medical care housing with skilled staff
Independent Living Properties
Assisted living propertie
Alzheimer's/Dementia Care
less than 20% of units set aside for skilled nursing or special needs Reserves:
Taxes and insurance escrows required
Borrower:
Strong single and multi-asset borrowers with proven track record in medical care housing.
Fannie Mae & Freddie Mac
Interest Rate -
Fixed and variable rate options
Term - 5 to 30 years.
Amortization - Up to 30 years.
Maximum LTV - 75% (80% for fixed rate tax-exempt bonds
Minimum DSCR
1.30x if the property is 100% Independent Living.
1.40x if the property is 100% Assisted Living.
1.45x if the property is stand-alone
Alzheimer's/Dementia Care
Recourse - Non- recourse execution is available, with standard
carve-outs required for "bad acts", such as fraud and bankruptcy.
Terms subject to change.
FHA Loans
FHA HUD 232 Acquisition and 223(f) for Refinancing current HUD loans:
Up to 35 year loan term and amortization
Fixed Interest rate for entire term of loan - NO balloon payment
For profit or non profit
Fully Assumable Loan
Non Recourse Loan
Prepayment penalty normally has 2 to 3 year lockout and declining penalty up to 10th year
CASH OUT not available and existing debt needs to be seasoned 2 years
Maximum mortgage amounts for FHA financing are limited to the lesser of:
A mortgage with a 1.35 debt service coverage ratio
80% of appraised value for "for profit" entities
85% of appraised value for "non-profit" entities
100% of existing debt including loan costs, repairs and replacement reserves
HUD 232 and 223f Costs
It is worth mentioning that both the HUD 232 and 223(f) programs have substantial up-front costs however the majority of it can be financed into the loan. An example of common fees are:
Appraisal: $5 - 8,500
Engineering Report: approx $3-4,000
Environmental: $2,500 to $5,500
HUD fee: 3/10ths of 1 percent
MAPS underwriting: approx $7,500
Assisted Living/Personal Care and Skilled Nursing Homes can be financed under the FHA Office of Healthcare facilities, known as LEAN. These product types are licensed and regulated by the State and often receive some type of government reimbursement for the care they provide. Nursing homes receive third party reimbursement under Medicare and Medicaid, as well as some Assisted Living Facilities in States with Medical Assistance Waivers.