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.

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.