Love Funding closed a $2.6 million FHA loan to take out bridge financing used to fund the acquisition of an assisted living and memory care facility in Tomball, 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 January. The new loan, secured 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 on the seller’s timeframe. Love Funding’s affiliation with Midland helped keep the financing costs down, despite the very short-term nature of the bridge loan.
“It would have been very difficult for the borrower to obtain a 60-day loan from another party at something less than a premium,” Lucas said. “This was a unique transaction made possible by our parent company, Midland States Bank.”