Critical repairs must be completed prior to closing. Non-critical repairs must be completed within 12 months of closing. Deposit Account Control Agreement will be required.
Full escrows for property taxes, all applicable insurance and any special assessments are funded at closing. A Replacement Reserve account must be established at closing. If the loan includes repairs or capital improvements to be completed after closing, an additional 20% repair escrow must be funded with cash or a letter of credit.
This is a non-recourse loan. Fully assumable subject to CMI and HUD approval. Long loan term - up to 35 years, self-amortizing. Market-driven, no low-income tenancy requirements. Low fixed interest rates, fully amortizing. Loan-to-value ratio – Assisted Living Facility (ALF) up to 75% for a for-profit enterprise inclusive of major moveable equipment, (80%for a not-for-profit). Skilled Nursing Facility
(SNF) up to 80% for-profit enterprise inclusive of major moveable equipment (85% for not-for-profit). Renovations and improvements of up to 15%of value may be included in mortgage. Most negative loan covenants typically found in conventional loan agreements are eliminated. Debt Service Coverage of 1.25 to 1.45.
Click here to download a PDF of this program.