Nursing Homes/Assisted Living
Refinance & Acquisition without Substantial Rehabilitation
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Rockport Mortgage Corporation is an FHA-approved
Mortgagee and actively provides financing
utilizing the FHA insurance programs nationwide.
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HUD 232/223(f)
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Refinance
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Acquisition
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Purpose
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FHA's Section 232 Program
was recently amended to provide mortgage
insurance for the refinance of conventional
(non-FHA insured) intermediate care facilities,
board and care homes and assisted living
facilities (collectively, "Residential
Care Facilities").
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Eligible
Borrowers
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Profit motivated, non-profit
motivated and public owners are eligible.
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Maximum
Term
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35 Years (fully amortizing)
or 75% of the estimated remaining economic
life whichever is less, with a minimum
term of 10 years.
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Maximum
Loan
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The lesser of:
1) 85% of FHA's value
(90% for non-profits)
2) Amount of debt serviced
by 85% of NOI attributable to the real
estate (90% for non-profits)
3) 100%
of HUD appraised transaction
costs
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The lesser of:
1) 85% of FHA's value
(90% for non-profits)
2) Amount of debt serviced
by 85% of NOI attributable to the real
estate (90% for non-profits)
3) 85% of
HUD appraised acquisition
costs (90% for non-profits)
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Personal Liability
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None
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None
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Prepayment
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Negotiable
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FHA Application
Fees
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0.3% of the loan amount.
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0.3% of the loan amount.
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Mortgage Insurance
Premium
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1% for the first year and
0.5% of the outstanding loan amount thereafter.
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Repairs and
Replacements
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Funds for repairs, deferred
maintenance and capital improvements for
up to 15% of value or $6,500 per unit (may
be adjusted for high cost areas) can be
included in the loan amount, subject to
the 85% loan to value limitations.
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Finance Fee
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Negotiable
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Secondary
Financing
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Surplus cash notes are permitted,
up to 7.5% of the project's value.
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Funding
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Qualifies for government
insured mortgage-backed securities or direct
Placement or may be used to credit-enhance
tax-exempt bonds.
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Interest Rate
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Subject
to market conditions.
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Territory
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Nationwide
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Additional
Parameters
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The FHA Section 232
pursuant to 223(f) mortgage insurance
program is the most attractive credit
enhancement program available for taxable
and tax-exempt acquisition financing
or refinance of existing nursing homes,
intermediate care facilities, assisted
living facilities, and board and care
(personal care) facilities.
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A replacement reserve
deposit will be required at closing.
The deposit can be capitalized in the
mortgage loan.
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Eligible Properties
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Residential Care Facilities
(nursing homes, intermediate care facilities,
board and care, and assisted living
facilities) must be at least three
years old and must provide the necessary
space for a central kitchen (whether
utilized or not) and group dining.
If day care is provided, the day care
program must be self supporting. A
Residential Care Facility must be licensed
and/or regulated by the state (or another
political subdivision).
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Assisted living facilities
and board and care or personal care
facilities also must provide separate
dwelling units and have supportive
services available to assist residents
in carrying our the activities of daily
living, including common rooms and
the facilities necessary for the provision
of the above-noted supportive services.
Individual assisted living units may
contain a kitchenette or full kitchen,
and a full bath.
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