|
Commercial Mortgage Loans |
|
|
 |
| Why Choose Capital Assets,Inc |
 |
| Capital Assets,Inc has the knowledge,
expertise and strategic relationships required to
provide you with the most competitive rates and terms
for your commercial property loan. |
-
Multiple commercial financing options
- Competitive interest rates, terms and costs
- Knowledgeable and seasoned commercial mortgage
specialists
- Certainty of execution
- Convenient electronic loan process saves you
time and money
|
|
|
|
| Request a Quote Today! |
 |
| Provide some basic information
about the property and commercial real estate financing you’re
seeking and we will provide a no cost no obligation
quote. |
-
Security and privacy protected
-
No social security number required
-
No credit inquiry
-
No cost or obligation
|
 |
|
|
| Commercial Learning Center |
 |
|
|
|
|
|
|
 |
|
|
Home >
Commercial Loan Center Refinance or Purchase |
HUD
FHA Section 232 - Commercial Loans for the Refinance or Acquisition
of Healthcare
Properties
|
HUD provides commercial loans
for assisted living, skilled nursing, intermediate care,
memory care and other residential care facilities
through Section 232. FHA insured mortgages
are available for the purchase or refinancing of
residential care facilities with a stabilized operating
history. Facilities currently financed with an FHA
insured healthcare mortgage are eligible for streamlined
refinancing through the FHA 223(a)(7) LEAN program.
-
Up to 80% leverage
- Up to 100% of transaction costs for refinance
- Non-recourse and assumable
|
-
Up to 35 year fixed rate term
-
Property types include assisted living, memory care,
skilled nursing, intermediate care
|
|
|
 |
 |
HUD FHA Section 232 Healthcare Loan Program Guidelines
|
|
Eligible Properties |
Section 232 provides commercial
mortgages
for assisted living facilities, skilled
nursing, skilled nursing and intermediate
and memory care properties meeting the
following requirements:-
Must provide continuous care.
-
Must offer three meals per day.
-
Facility must be licensed by appropriate government
entity.
-
May include up to 25% non-licensed independent
living units.
-
20 bed minimum.
-
Operating leases to qualified facility operators are
permissible, subject to HUD approval.
-
The facility must have been completed or
substantially rehabilitated for at least three years
prior to the date of the application. Projects with
additions completed less than three years previous
are eligible as long as the addition was not larger
than the original project size and number of beds.
|
|
Commercial Space |
Commercial space is limited to 20% of
gross floor area and commercial income is
limited to 20% of gross income. |
|
Cash Out |
Prohibited under regulations of Section
232. |
|
Maximum Loan Amount
(LTV) |
Maximum loan amount will be the lesser
of: 1. 80% of appraised value (85% for
non-profits);
2. 100% of the transaction cost for a
refinance, and 85% of the transaction cost
for a purchase transaction. Recognizable
transaction costs include repairs, initial
replacement reserves, third party reports,
closing costs, along with eligible existing
indebtedness or purchase price.;
3. Minimum Debt Service Coverage of 1.45x. |
|
Eligible Locations |
All 50 states, Puerto Rico, U.S. Virgin
Islands, and Guam. |
|
Fixed Rate Term |
35 years not to exceed 75% of remaining
economical useful life or improvements. |
|
Minimum DSCR |
1.45. |
|
Prepayment Penalty |
Negotiable - typically a two-year lock
out followed by a step down premium (e.g.
8,7,6,5,4,3,2,1). |
|
Guarantee |
Non-recourse for most loans subject to
standard carve-outs. |
|
Assumable |
Yes, subject to lender approval. |
|
Escrows |
-
Tax and Insurance Impounds:
Required.
-
Replacement Reserves: Required
- Monthly deposit required and amount depends on
property condition.
-
Initial Deposit to Reserve
Fund: Required - One time deposit may be required
depending on property condition.
-
Critical and Non-Critical
Repair Escrow: May be required for properties with
life, safety, health or code related repair and/or
maintenance concerns.
|
|
Mortgage Insurance Premium |
Payable at Closing in an amount equal to
0.65% of the loan amount for each year of
construction. |
|
Fees and Expenses |
1. HUD Fees - Application Fee and
Inspection Fee;
2. FHA Mortgage Insurance Premium due at
closing;
3. Lender Financing and Placement fee up to
3.5% payable at closing;
4. Actual cost of Third Party Reports. |
|
Third Party Reports |
Appraisal, Market Study, Phase I
Environmental, Engineering Report and
Seismic where applicable. |
|
Sponsor Requirements |
-
Experienced owner operators.
-
Minimum credit and financial
capacity requirements.
|
|
|
|
 |
 |
|
|
|
What You Need to Know About Section 232
|
Program descriptions,
highlights and underwriting guidelines are helpful when
considering if a HUD Healthcare commercial mortgage is right for
you and your property. However, they don't always tell
the whole story. Below is what you need to know about
Section 232 Healthcare Construction Loan program that
program guidelines and highlights don't tell you.
-
The property will be required to submit an annual
audit of operations to HUD and lender.
-
Surplus cash may be distributed two times per year.
-
Full or partial compliance with ADA and UFAS
requirements may be required.
- HUD requires that healthcare facilities maintain
adequate liability insurance.
|
|
|
|
