Love Funding closed a $2.9 million bridge-to-HUD take out loan to fund the acquisition of a memory care facility in Buda, Texas.
Love Funding Senior Director Leonard A. Lucas of the Boston office obtained the bridge loan from Love Funding’s parent company, Midland States Bank, in February. The new loan, secured this month through the U.S. Department of Housing and Urban Development’s Section 232/223(f) program, will pay down the bridge loan and provide low-rate, non-recourse financing for a 35-year term.
The bridge loan made it possible for the buyer to move forward with the transaction within existing time constraints. Love Funding’s affiliation with Midland helped keep the financing costs down and provided the borrower with favorable terms.
“Given the borrower’s time constraints, the bridge loan through Midland States Bank was the missing piece to make it all work,” Lucas said. “Midland was able to accommodate the needs of a valued long-term customer, and Love was then able to use our HUD expertise to provide long-term financing.”
BRIDGE LOAN PLATFORM
Love Funding introduced the bridge loan platform in 2015 as a means for providing interim funding support for acquisition and refinancing applications on HUD multifamily and healthcare loans. The platform was later expanded to include tax credit equity bridge loans, and construction/mini-perm financing for multifamily and healthcare development.