Fixed rate construction and permanent financing for the construction or substantial rehabilitation of assisted living, nursing home, intermediate care and board and care facilities. 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 may be increased by 5% for non-profit borrowing entities.
Fixed-rate, subject to market conditions at time of rate lock.
TERM & AMORTIZATION
Interest-only during construction period followed by 40 years, fully amortizing.
MORTGAGE INSURANCE PREMIUM
0.77% at closing,
0.77% 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.
Payment of prevailing wages is required by HUD for all contractors and subcontractors.
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.