Healthcare Facility New Construction

Lesser of: 90% Loan-to-Cost or 85% SNF or 75% ALF, of Value
Interest-only construction loan that automatically converts to 40-year permanent financing
40 Year Amortization
40 Year Term (no balloon)
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
No personal liability (non-recourse)
Negotiable pre-payment terms
1:45 Minimum Debt Service Coverage
This loan is always assumable
Third-party expenses and loan costs are financeable


Healthcare Facility - Substantial Rehabilitation Loan


Lesser of: 90% Loan-to-Cost or 80% for SNF or 75% for ALF,  of Value
Interest-only construction loan that automatically converts to 40-year permanent financing
40 Year Amortization
40 Year Term (no balloon)
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
No personal liability (non-recourse)
Negotiable pre-payment terms
1:45 Minimum Debt Service Coverage
This loan is always assumable
Third-party expenses and loan costs are financeable


Healthcare Facility - Acquisition Loan

80% Loan-to-Value
35 Year Amortization
35 Year Term (no balloon)
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
No personal liability (non-recourse)
Negotiable pre-payment terms
1:45 Minimum Debt Service Coverage
This loan is always assumable
Third-party expenses and loan costs are financeable


Healthcare Facility - Loan Refinance

80% Loan-to-Value, Rate and Term – no cash out.
35 Year Amortization
35 Year Term (no balloon)
No maximum loan amount
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
No personal liability (non-recourse)
Negotiable pre-payment terms
1:45 Minimum Debt Service Coverage
This loan is always assumable
Third-party expenses and loan costs are financeable


Healthcare Facility Non-Profit 202 - Loan Refinance

Recently, HUD issued policy change H 04-21 to Section 202 Housing Code.
Currently, HUD 202 properties receive monthly Section 8 subsidies, and return a large portion of that subsidy back to HUD through debt service on the current HUD 202 loan. Refinancing with Trust Mortgage with a HUD insured mortgage (with a private lender) can result in significant savings which are reinvested into the property, rather than.


The Goal


Many 202s were financed at high rates. Refinancing at today’s lower rates, while they last, with a new 35 year HUD insured mortgage, accomplishes two main objectives that most all non profit boards are interested in:


1) Put money back into the property for no increased cost:

A typical original loan amount of $2,500,000 financed at 9% that is 20 years old would result in an increased mortgage proceeds of $1,490,000 that could be used for improvements, an increase in reserves or both. By keeping the current debt service the same!


2) Tie the property to HUD for an additional 35 years:


There is always talk about HUD reforming the Section 8 program and trying to eliminate it. By refinancing with a HUD insured loan for an additional 35 years helps preserve the HAP contract and the Section 8 rents subsidies.
 
[fff] The Lender brings several decades of non-profit and low-income finance experience to each transaction. We are comprised of a team with the breadth of experience to ensure your transaction closes as quickly and painlessly as possible.


This experience includes:


1) HUD lobbying group member helping to formulate housing policy for HUD.


2) Asset and Property Manager for thousands of units of elderly housing in several states


3) Underwriting and closing some of the first 202/223(f) Refinance Transactions in the nation.


4) Low Income Housing Tax Credit experience beginning with the inception of the program,


5) Property management experience with all forms of low income and elderly housing comprising over

     60,000 units in several states including luxury condos, office and retail.


A HISTORY OF SUPPORTING NON-PROFITS

Due to this varied and nuanced experience, we are able to maximize your refinance benefits while minimizing your time, allowing your group to focus on providing your core services.


The principals of the Lender are one of the few lenders to actually have developed, managed and financed subsidized and senior housing with closed loans from Alaska to Florida.


THE PROCESS


Stage I: Processing


Processing Fee:


Refunded at closing $12,500


Phase I Environmental Report (est.): $2,500


Appraisal (est.): $5,000 to $9,000


Property Condition Assessment (PCA) Report (est.) $4,000


Exam Fee to HUD with final application: 3/10 of1% of Mtg Amount


Provided all borrower requested information is received in a timely manner, it's estimated 60 days to prepare the Firm Submission for submittal to HUD and a 60 day review period for HUD. Total Time frame is 120 days. Successful conclusion of’ processing, results in a Firm Commitment to set up the sale of the GNMA securities and closing within a few weeks.


Stage II: Closing


Good Faith Deposit (locks the rate and is paid at commitment)1/2 of 1% of mortgage (50 bps). Credited to fees at closing. THIS MAYBE WAIVED FOR EXISTING 202′ S. HUD requires a minimum of 15 days to review closing documents. Typical closing times are within 30 days of rate-lock. This may be expedited with waivers from HUD, efficient reviews, etc. The above time line indicates 5 months for a closing with HUD. This time frame may be shortened to the extent that third parties (appraiser, engineer) can expedite their engagements.
 
Please contact us now to insure the long term viability of your property

WelchCoRealty.com Copyright © 2017-2020. All rights reserved.