Fannie Mae - Health Care Facility Loans -

Acquisition or refinance, with or without repairs, of existing projects not requiring substantial rehabilitation. Eligible properties must be a minimum of 3 years old and may include intermediate care, board and care, residential care, assisted living, and skilled nursing facilities. Additional property types may include limited adult day care or independent living. Financing is not available for properties charging substantial up-front admission fees. No equity take-out is permitted.

Features

One-step processing under HUD’s Multifamily Accelerated Processing (MAP).
Davis-Bacon wages not required.
Non-critical repairs and capital improvements may be included in the loan.
Mortgagor has up to 12 months from loan closing to complete repairs and improvements.

Structure
Loan Amount	Lesser of: (i) 85% HUD appraised value (90% for nonprofit Borrowers); (ii) 100% of refinancing costs; or (iii) 85% of acquisition costs (90% for nonprofit Borrowers).
Debt Service Coverage	1.1765x; after deducting proprietary earnings from NOI.
Loan Terms	35 years (not to exceed 75% of estimated economic life).
Amortization	Fully amortizing. 35 years for most properties.
Recourse	nonrecourse
Rates	Ginnie Mae MBS and whole loan rates priced daily.
Rate may be locked after Borrower’s acceptance of HUD’s Firm Commitment. Interest rate buy-downs available.

Optional Features
Subordinate Financing	Soft second allowed up to 7.5% of value.
Assumability	Fully assumable with HUD’s and Lender’s consent.
Prepayment	Any prepayment lock out or penalty periods negotiable with Investor.

Requirements
Initial deposit to the Replacement Reserve can be included in the mortgage; monthly deposits required. Single-asset Borrower entity.

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