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.
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.