Refinance or acquisition of existing Nursing Homes, Assisted Living, Intermediate Care, and Board & Care facilities.
Project must have a minimum of 20 units/beds to be eligible.
The facility must have received its certificate of occupancy at least 3 years prior to the date of the firm commitment application.
Eligible for up to 20% of total square footage and 20% of EGI.
Single asset, special purpose entity. Either for-profit or nonprofit.
MAXIMUM LOAN AMOUNT
The lesser of:
- 80% of LTV;
- 1.45 DSCR;
- 85% of purchase price; and
- existing debt plus eligible transaction costs.
* Non-profits can typically add 5% to stated percentages if they agree to the non-profit restrictions.
** Other than the above constraints, there are no minimum or maximum loan sizes.
TERM & AMORTIZATION
A maximum term of the lesser of 35 years or 75% of remaining economic life; fully amortizing.
Fixed-rate, subject to market conditions at the time of rate lock.
MORTGAGE INSURANCE PREMIUM
1.0% payable at closing, 0.65% annually thereafter; and 0.45% for qualifying LIHTC projects; and
0.25% for qualifying Green projects.
Fully assumable, subject to HUD approval.
Negotiable. Best rates typically have a 1–2-year lockout with a declining prepayment penalty for the remainder of the first 10 years.
THIRD PARTY REPORTS
Appraisal, Phase I, and Property Condition & Needs Assessment (PCNA). Other reports as needed.
Escrows for taxes, insurance and mortgage insurance premium are required.
Initial and monthly deposits required based on long-term physical needs of property.
Cash or a letter of credit for up to 20% of the estimated cost of repairs.
HUD APPLICATION FEE
$3 per $1,000 of requested loan amount.
This sheet sets out the general guidelines of a loan program and is designed solely as an aid to prospective borrowers and other clients. It does not represent or imply a contract or a commitment to lend funds. A commitment to lend funds may only be made by a written letter issued by NewPoint to a prospective borrower. This term sheet is subject to change at any time without notice at the sole discretion of NewPoint Real Estate Capital LLC.