Here is some information regarding these facilities. There IS money to be lent on them since it's a HUD program! Under the new UW process, these can fund in 60 days now.
I just got a term sheet for 6.6% for construction which flips into a 40yr. perm loan at 6%!
Assisted Living Facilities
New Construction or Substantial Rehabilitation
Eligible Properties:
To-be-built or substantial rehabilitation projects that are being refinanced or acquired
Nursing Homes, Intermediate Care Facilities and Assisted Living Facilities
Eligible Borrowers:
Profit motivated and non-profit entities
Interest Rate:
Low fixed rate established by market; spread over the 10-year Treasury
Term(s):
Up to a 40-year permanent loan plus construction period
Prepayment:
Negotiable, depending on market conditions
No yield maintenance
Loan Amount(s):
No maximum
Mortgage Loan Limitations:
The maximum insured mortgage will be the lesser of:
The amount that can be supported with debt service calculated at 90% of the
remaining net annual operating income, after an allowance for proprietary income
(95% for non-profits), or;
90% of the estimated eligible replacement cost, including major movable
equipment, subject to cost certification, (95% for non-profits) or;
90% of value upon completion (95% for non-profits)
(For substantial rehabilitation subject to existing mortgage) 100% of the estimated cost of rehabilitation plus the lesser of (a) existing secured indebtedness, or(b) 90% of estimated fair market (as-is) value prior to rehabilitation (95% for non-profits)
Mortgage Insurance Premium:
0.57% annually, 0.45% with LIHTCs
Other Program Features:
Debt is non-recourse including during the construction period without carve-outs to the sponsor
Fully assumable with prior FHA approval
FHA insurance provides credit enhancement for tax-exempt financing
Contact Darryl@glblsolutions.com for more information.
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