Senior Housing Loan Programs
Changing demographics are contributing to significant growth in the senior housing industry, and Love Funding continues to be a leader in the financing of properties in this sector. We offer a variety of options for age-restricted, independent living senior housing properties through the FHA as well as with our conventional lending partners. Loans are available for:
- Acquisitions
- Construction
- Substantial rehabilitation
- Refinancing of existing debt
Age-restricted housing may be financed using HUD’s 221(d)(4) program for new construction and substantial rehabilitation. Borrowers can take advantage of a fixed-rate, fully amortizing loan for 40 years, with interest only during construction, debt service coverage of 1.10 and a loan-to-cost of 90%. Terms under HUD’s 223(f) 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 (80% for cash-out refinance), as well as 100% of the transaction cost for a refinance and 85% of the transaction cost for a purchase transaction. HUD’s 231 program for construction and substantial rehabilitation of housing for the elderly has recently been included under the MAP Program and has generally the same terms as the 221(d)(4) program.
Typical acquisition or refinancing loans through conventional senior housing financing sources include short-term floating-rate structures with interest only payments and fixed-rate loans with a 10-year term and 25 to 30-year amortization schedules, typically 70-75% LTV.
Our people have the knowledge and professional resources to identify the best options to maximize your investment and to manage the complex financing details of your senior housing transaction.