| FHA 232/223F LEAN Loans Nationally Assisted Living Facility - Nursing Home Loans Kendall Realty Advisors LLC - Chicago, IL |
FHA - 232/223(f) - Refinance or Purchase of Skilled Nursing and
Assisted Living Facilities - Senior Housing Finance
KENDALL REALTY ADVISORS LLC. The responsive
Lean lending team
ELIGIBLE PROPERTIES: Skilled nursing assisted living, intermediate care and board and care facilities,
or any combination - Moderate rehabilitation is permitted.
LOAN TYPE: Permanent loan. We have also programs for rural deals call Scott.
Min. FHA 232 $2,000,000 other programs $1,000,000
MAXIMUM LOAN: The lesser of the following criteria:
1. 85% of HUD appraised value;
2. 1.17 debt service coverage.
Refinance Transaction:
1. The existing indebtedness plus transaction costs.
Purchase Transaction:
1. 85% of the cost of acquisition.
INTEREST RATES: Fixed rate determined by market rates at the time of rate lock.
AMORTIZATION: Up to 35-year, fully amortizing loan.
PERSONAL RECOURSE: Non-recourse.
ASSUMABILITY: Assumable, subject to approval.
SUBORDINATE FINANCING: Allowable, subject to HUD criteria.
PROFESSIONAL AND GENERAL LIABILITY INSURANCE: Required.
ANNUAL MORTGAGE INSURANCE PREMIUM: 1.0% of the mortgage amount is payable at closing.
Thereafter, the MIP is escrowed monthly based on a rate established by HUD. The rate is fixed at loan
endorsement.
ESCROWS: Monthly escrows for property insurance, real estate taxes, reserves for replacement,
sinking fund (if applicable) and mortgage insurance premiums. An initial deposit to replacement
reserve and 100% of repair costs (both as determined by HUD) are escrowed from mortgage
proceeds.
COMMERCIAL SPACE: Commercial area shall not exceed 20% of the total net rentable area of the
project and commercial income shall not exceed 20% of effective gross income.
ENVIRONMENTAL ISSUES: Special rules apply for properties which are located in Flood Hazard Zones
as designated by FEMA. Lead-based paint and asbestos must be abated in accordance with HUD
requirements.
APPLICATION FEE: A non-refundable fee of 0.3% of the requested mortgage amount is payable to HUD
at the time of application, plus estimated underwriting costs for market study, appraisal,
architectural/engineering report, cost analysis, environmental assessment and other loan processing
costs.
FINANCING AND PLACEMENT FEES: Negotiable.
CLOSING EXPENSES: Standard transaction costs, including legal fees, title insurance and survey.
PROFESSIONAL LIABILITY INSURANCE: Required by HUD for all loans. The minimum requirement is
$1 million per occurrence and $3 million aggregate. Further information regarding this requirement is
available upon request.
STATE LICENSURE: All loans must be licensed by the state or other governmental entity who has
oversight responsibilities.
OTHER HUD REQUIREMENTS: Cash escrows or letters of credit are required for the following:
1. 20% of repair costs as a completion guarantee.
2. 2.5% of repair costs as a latent defects guarantee, due at completion of repairs.
3. Forecasted operating deficits, (maximum of 18 months) to be released upon achievement
of breakeven operations for 90 days.
HUD PROCESSING TIME:
One stage for HUD Multifamily Accelerated Processing (MAP) procedures:
1. Firm Commitment Stage: 60 days for review.
PRELIMINARY SUBMISSION PACKAGE:
Include the following in your request for a loan quote:
1. Property description and location map.
2. Number of beds with breakdown of proposed rents by payor source.
3. Current bed roll and year-to-date operating statement.
4. Operating history – prior 3 years, if available.
5. Current year operating budget.
6. Existing debt or purchase price.
7. Sponsor resume.
Scott Kendall 847-903-7578 kendallrealty@gmail.com
Charles Kendall 773-259-7074 kendallrealtyadv@gmail.com
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