Loan Type: HUD/FHA - 232  - fixed-rate, non-recourse, construction and permanent loan
 Property Type:   Licensed skilled nursing, assisted living, and board and care facilities with limited independent living units.
 Purpose:   New construction or substantial rehabilitation. For-profit t, nonprofit and public borrowers may utilize this program.
 Eligibility:   Certain cost thresholds must be met for rehabilitation projects. Davis-Bacon prevailing wage standards apply.
 Amount: Unlimited, prefer $5 million or greater.
 Loan-To-Value: Up to 90% (for-profits) or 95% (nonprofits) of appraised value for new construction projects. Up to 90% (for-profits) or 95% (nonprofits) of appraised value plus up to 100%of rehabilitation costs for substantial rehabilitation projects.  
 Debt Service Coverage:   Minimum 1.05x for nonprofit borrowers; 1.11x for for-profit t borrowers
 Interest Rate:   Fixed rate subject to market conditions at rate lock
 Term: Construction period plus up to 40 years upon completion
 Amortization: Up to 40 years upon completion (interest only during construction)
 Liability:   Non-recourse loan
 Assumability:   Yes, with FHA approval
 Prepayment:   Typically, 2-year lockout with fixed declining thereafter
 Escrows:   Monthly escrows for property insurance, real estate taxes, reserves for replacement and mortgage insurance premiums.
 Fees & Expenses:   Borrower is responsible for due diligence, transaction and legal fees.  At time of closing, these fees and all other closing costs may be included in the loan amount.  
 Timing:   This transaction typically can be completed in eight to 10 months.  Actual processing times vary depending on the project.  
 Post-closing Reporting:   Annual audited financial statements

finance

Construction - HUD/FHA - healthcare