Fixed rate permanent financing for the refinance, acquisition or moderate rehabilitation of existing assisted living, nursing home, intermediate care and board and care facilities. Properties must be at least three years old. Available for properties throughout the United States.
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,
0.65% annually thereafter.
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.
Contact your First American representative for a price quote.
Have any questions about this program? You can reach out to us by filling out a contact form.