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Healthcare
HUD 232/223(f)
Acquisition or Refinance
Program Overview
Provides a fixed rate, fully-amortizing loan for the acquisition or refinance of stabilized residential healthcare facilities, including skilled nursing, assisted living, and board & care homes.
Typical Terms
- Borrower Type
- For-Profit or Non-Profit single asset borrower entity
- Recourse / Guaranty
- Non-recourse
- Loan Term / Amortization
- Maximum term of 35 years, fully-amortizing
- Interest Rate
- Determined by market conditions and fixed for the full term of the loan
- Prepayment
- Negotiable. Typically, 10-year call protection with a combination of lockout and/or stepdown pre-payment penalty
- Assumption
- Loans are fully assumable, subject to HUD approval.
- HUD Application Fee
- 0.3% of the loan amount, due at Firm Application submission
- HUD MIP
- 1.00% due at closing and 0.65% annually
- 3rd Party Reports
- Appraisal, Phase I Environmental, Project Capital Needs Assessment (PCNA), and Zoning. Lead Based Paint, Asbestos, Radon, and other specialty testing on as-needed basis per program requirements
- Reserves
- Typical Tax and Insurance escrows (including MIP) and Replacement Reserves as determined by PCNA and program requirements
Eligible Property Types
- Skilled Nursing Facilities
- Assisted Living Facilities
- Board & Care Homes