Critical repairs must be completed prior to
Non-critical repairs must be completed within
12 months of closing.
Deposit Account Control Agreement will be
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
Long loan term - up to 35 years, selfamortizing.
Market-driven, no low-income tenancy
Low fixed interest rates, fully amortizing.
Loan-to-value ratio – Assisted Living Facility
(ALF) up to 80% for a for-profit enterprise
inclusive of major moveable equipment, (85%
for a not-for-profit). Skilled Nursing Facility
(SNF) up to 80% for-profit enterprise inclusive
of major moveable equipment (85% for notfor-
Renovations and improvements of up to 15%
of value may be included in mortgage
provided that no more than one building
system is being replaced. Most negative loan covenants typically found
in conventional loan agreements are
Debt Service Coverage of 1.45.
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