HUD/FHA 232/223(f)

PURPOSE

Refinance or acquisition of existing Nursing Homes, Assisted Living, Intermediate Care, and Board & Care facilities.

ELIGIBLE PROJECT

Project must have a minimum of 20 units/beds to be eligible.

ELIGIBLE PROPERTIES

The facility must have received its certificate of occupancy at least 3 years prior to the date of the firm commitment application.

COMMERCIAL SPACE

Eligible for up to 20% of total square footage and 20% of EGI.

BORROWER

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.

INTEREST RATE

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.

RECOURSE

Non-recourse.

ASSUMABILITY

Fully assumable, subject to HUD approval.

PREPAYMENT

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

Escrows for taxes, insurance and mortgage insurance premium are required.

REPLACEMENT RESERVES

Initial and monthly deposits required based on long-term physical needs of property.

REPAIRS/IMPROVEMENTS

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.