Loan Purpose: Streamlined Refinance

HOSPITALS | FHA/HUD Section 242/223(a)(7)

Refinancing of Healthcare Properties with Existing FHA-Insured Debt

Our HUD Section 242/223(a)(7) program provides for the streamlined refinance of an existing FHA-insured project.

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Hospitals

Term

Up to 12 years beyond the remaining term of the existing mortgage, but not to exceed the original term. A term extension request must be supported by a determination of the remaining economic life of the property.

Loan Parameters

Loan principal can be increased to original FHA-insured loan amount.

HUD Fees and Expenses

  • FHA application (examination) fee: 0.3% of mortgage amount.
  • Mortgage Insurance Premium of 0.55% of the outstanding loan amount.

Funding

Ginnie Mae guaranteed mortgage-backed securities.

Other Program Parameters

The Mortgage Reserve Fund (MRF) established for the hospital’s original 242 insured loan must be continued. However, the MRF Schedule can be renegotiated to make it consistent with the interest rate and term of the refinanced loan.

HEALTHCARE PROPERTIES | FHA/HUD Section 232/223(a)(7)

Refinancing of Healthcare Properties with Existing FHA-Insured Debt

Our FHA/HUD Section 232/223(a)(7) mortgage program provides for the streamlined refinance of an existing FHA-insured project.

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Healthcare Facilities

Eligible Properties

All properties that currently have FHA-insured debt.

Term

Up to 12 years extension of the original FHA-insured loan maturity, not to exceed the maximum term for the original loan program.

Interest Rate

Locked before closing and fixed for the duration of the term. (Subject to market conditions.)

Guarantees

Non-recourse for the duration of the term.

Prepayment

Customizable, typically a 10-year step down, based on market conditions and borrower preferences.

Assumable

Subject to FHA/HUD and lender approval.

Loan Parameters

Maximum loan amount will be the lesser of the original principal balance when first insured or parameters below.
Assisted Living 100% 1.11
Skilled Nursing 100% 1.11

Fees and Expenses

  • FHA Application Fee of 0.15% of loan amount.
  • Mortgage Insurance Premium of 0.5% due to HUD at closing and 0.55% annually thereafter.

Third-Party Reports

Property Capital Needs Assessment (PCNA) required.

Timing

Approximately 3 - 4 months for engagement, submission, FHA/HUD review, and closing.

Funding

Ginnie Mae guaranteed mortgage-backed securities.

Other Program Parameters

Cash out is not permitted.

MULTIFAMILY | FHA/HUD Section 223(a)(7)

Refinancing of Multifamily Properties with Existing FHA-Insured Debt

Our HUD Section 223(a)(7) mortgage program provides for the streamlined refinance of an existing FHA-insured project.

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Multifamily Housing

Eligible Properties

All properties that currently have FHA-insured debt.

Term

Up to 12 years extension of the original FHA-insured loan maturity, not to exceed the maximum term for the original loan program.

Interest Rate

Locked before closing and fixed for the duration of the term. (Subject to market conditions.)

Guarantees

Non-recourse for the duration of the term.

Prepayment

Customizable, typically a 10-year step down, based on market conditions and borrower preferences.

Assumable

Subject to FHA/HUD and lender approval.

Loan Parameters

Maximum loan amount will be the lesser of the original principal balance when first insured or parameters below.
Market Rate 100% 1.11 0.50% / 0.25%*
Affordable 100% 1.11 0.45% / 0.25%*
Subsidized 100% 1.05 0.25%

(*If project meets Green/Energy Efficient housing qualifications.)

HUD Fees and Expenses

FHA Application Fee of 0.15% of loan amount.

Third-Party Reports

Property Capital Needs Assessment (PCNA) may be required.

Timing

Approximately 3 - 4 months for engagement, submission, FHA/HUD review, and closing.

Funding

Ginnie Mae guaranteed mortgage-backed securities.

Other Program Parameters

  • Repairs limited to $1,500 per unit, exclusive of accessibility changes.
  • Cash out is not permitted.