Healthcare
Love Funding can finance the acquisition, construction, substantial rehabilitation or refinance your existing debt on all types of healthcare properties through the FHA as well as our conventional lending partners. The types of facilities that we finance include:
- Skilled Nursing Facilities (Nursing Homes)
- Long Term Acute Care Facilities (LTACs)
- Intermediate Care Facilities
- Board and Care Homes
- Assisted Living Facilities
- Continuum of Care Retirement Communities (CCRCs)
- Hospitals and Surgery Centers
Loan terms under HUD’s 232 program for new construction and substantial rehabilitation include a fixed-rate fully amortizing loan for 40 years, with interest only during construction, debt service coverage of 1.11 and a loan-to-cost of 90% of appraised value. Terms under HUD’s 232/223f program for acquisition or refinance loans include a fixed-rate fully amortizing loan for 35 years, debt service coverage of 1.1765, 85% of market value, as well as 100% of the transaction cost for a refinance and 85% of the transaction cost for a purchase transaction.
Typical acquisition or refinancing loans through conventional healthcare financing sources include short-term floating rate loans with interest only payments. Loan maturity will be in 2 – 3 years plus several 1-year renewal options. Loan purpose might be acquisition or refinance of single assets or multiple property portfolios, provide bridge financing or carry a property through final lease-up. Fixed-rate loans have maturities of 5, 7 or 10 years and 25 to 30-year amortization schedules. Lenders limit loan size to between 75% and 85% of market value and require debt service coverage of 1.35 or greater.
As a leading lender in healthcare finance, Love Funding will draw on our expertise in these areas to deliver the most desirable funding solutions to our customers.