Acquisition or Refinance
Nursing Homes/Assisted Living Facilities
HUD Section 223(f)
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Term Sheet
|
| Borrower: |
Profit and Non-profit |
| Maximum Loan: |
The lesser of: (a) 85% of HUD appraised value; (b) 1.17 debt service coverage; or (c) statutory unit mortgage limits
Acquisition:
85% of acquisition cost
Refinance: The greater of: (a) 80% of value; or (b) 100% of the cost to refinance
|
| Interest
Rate: |
Fixed rate determined by market rates at time of rate lock |
| Prepayment Provisions: |
The remaining term of existing mortgage |
| Term: |
35 years, not to exceed 75% of the remaining economic life |
| Amortization: |
Fully amortizing loan |
| Recourse: |
No personal or corporate liability |
| Rate Lock: |
30 to 45 days prior to closing |
| Subordinate Debt: |
Additions or alterations are funded with Subordinate Debt insured under section 241 of the National Housing Act. |
| Assumability: |
Subject to HUD and BHMC approval. |
| Escrows: |
Monthly escrows are required for taxes, insurance, mortgage insurance premium and replacement reserves. |
| FEES (included in mortgage): |
| HUD Application Fee: |
0.3% of mortgage amount |
| Third Party Reports: |
Market Study, Appraisal, Architectural/Engineering Report, Cost Analysis, Environmental Assessment. |
| Inspection Fee: |
0.5% of mortgage amount |
| Financing Fee: |
Negotiable |
| Closing Costs: |
Standard: legal, title, survey |
| Mortgage Insurance Premium: |
1% of the actual outstanding daily balance during construction, thereafter,.5% annually based on the declining mortgage balance. |
| Estimated Processing Time: |
Generally 90 days to the issuance of the Firm Commitment; three to four weeks to close the loan. |
| Territory: |
Nationwide |
