Health Care Financing

Health Care Properties consist of: Hospitals, Assisted Living Facilities, Nursing Homes, Hospice Facilities, and  Rehab Facilities 

What Are Healthcare Properties?

  • Hospitals |Nursing Homes| Assisted Living Facilities |Hospice Facilities |Rehab Facilities|

Healthcare Facility New Construction Financing

Loan Details

  • Lesser of: 90% Loan-to-Cost or 85% SNF or 75% ALF, of Value
  • Interest-only construction loan that automatically converts to 40-year permanent financing
  • 40 Year Amortization
  • 40 Year Term (no balloon)
  • No maximum loan amount
  • Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
  • No personal liability (non-recourse)
  • Negotiable pre-payment terms
  • 1:45 Minimum Debt Service Coverage
  • This loan is always assumable
  • Third-party expenses and loan costs are financeable
  • Apply Here 

    Healthcare Substantial Rehabilitation Financing

    Loan Details

  • Lesser of: 90% Loan-to-Cost or 85% SNF or 75% ALF, of Value
  • Interest-only construction loan that automatically converts to 40-year permanent financing
  • 40 Year Amortization
  • 40 Year Term (no balloon)
  • No maximum loan amount
  • Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
  • No personal liability (non-recourse)
  • Negotiable pre-payment terms
  • 1:45 Minimum Debt Service Coverage
  • This loan is always assumable
  • Third-party expenses and loan costs are financeable
  • Apply Here 

    Healthcare Facility Acquisition Financing

    Loan Conditions

    Healthcare Facility Acquisition Loans apply to properties at least 3 years old or which have not had a certificate of occupancy for at least 3 years, and which do not require substantial rehabilitation for occupancy. Some repairs are allowable if they do not exceed 15% of the post-repair appraised value, and do not result in greater than 50% replacement of any two major components of the building such as windows or the roof.

    Loan Details

  • 80% Loan-to-Value
  • 35 Year Amortization
  • 35 Year Term (no balloon)
  • No maximum loan amount
  • Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
  • No personal liability (non-recourse)
  • Negotiable pre-payment terms
  • 1:45 Minimum Debt Service Coverage
  • This loan is always assumable
  • Third-party expenses and loan costs are financeable
  • Apply Here 

    Healthcare Facility Loan Refinance

    Loan Conditions

    Healthcare Facility Acquisition Loans apply to properties at least 3 years old or which have not had a certificate of occupancy for at least 3 years, and which do not require substantial rehabilitation for occupancy. Some repairs are allowable if they do not exceed 15% of the post-repair appraised value, and do not result in greater than 50% replacement of any two major components of the building such as windows or the roof.

    Loan Details

  • 80% Loan-to-Value
  • 35 Year Amortization
  • 35 Year Term (no balloon)
  • No maximum loan amount
  • Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield
  • No personal liability (non-recourse)
  • Negotiable pre-payment terms
  • 1:45 Minimum Debt Service Coverage
  • This loan is always assumable
  • Third-party expenses and loan costs are financeable
  • Apply Here 

    Healthcare Facility Nonprofit 202 Loan Refinance

    Currently, HUD 202 properties receive monthly Section 8 subsidies, and return a large portion of that subsidy back to HUD through debt service on the current HUD 202 loan. Refinancing with Trust Mortgage with a HUD insured mortgage (with a private lender) can result in significant savings which are reinvested into the property, rather than.

    The Goal 

    Many 202s were financed at high rates. Refinancing at today’s lower rates, while they last, with a new 35 year HUD insured mortgage, accomplishes two main objectives that most all non profit boards are interested in:

    1) Put money back into the property for no increased cost:A typical original loan amount of $2,500,000 financed at 9% that is 20 years old would result in an increased mortgage proceeds of $1,490,000 that could be used for improvements, an increase in reserves or both. By keeping the current debt service the same!

    2) Tie the property to HUD for an additional 35 years:There is always talk about HUD reforming the Section 8 program and trying to eliminate it. By refinancing with a HUD insured loan for an additional 35 years helps preserve the HAP contract and the Section 8 rents subsidies.

    We are comprised of a team with the breadth of experience to ensure your transaction closes as quickly and painlessly as possible. This experience includes:

    1) HUD lobbying group member helping to formulate housing policy for HUD.

    2) Asset and Property Manager for thousands of units of elderly housing in several states

    3) Underwriting and closing some of the first 202/223(f) Refinance Transactions in the nation.

    4) Low Income Housing Tax Credit experience beginning with the inception of the program,

    5) Property management experience with all forms of low income and elderly housing comprising over 60,000 units in several states including luxury condos, office and retail.

    A HISTORY OF SUPPORTING NON-PROFITS

    Due to this varied and nuanced experience, we are  able to maximize your refinance benefits while minimizing your time, allowing your group to focus on providing your core services.

    Our partners  are one of the few lenders to actually have developed, managed and financed subsidized and senior housing with closed loans from Alaska to Florida.

    THE PROCESSStage I: ProcessingProcessing Fee: $12,500.00Refunded at closing$12,500Phase I Environmental Report (est.):$2,500Appraisal (est.):$5,000 to $9,000Property Condition Assessment (PCA) Report (est.) $4,000Exam Fee to HUD with final application:3/10 of1% of Mtg AmountProvided all borrower requested information is received in a timely manner, TMC estimates 60 days to prepare the Firm Submission for submittal to HUD and a 60 day review period for HUD. Total Time frame is 120 days. Successful conclusion of’ processing, results in a Firm Commitment to set up the sale of the GNMA securities and closing within a few weeks.

    Stage II: Closing

    Good Faith Deposit (locks the rate and is paid at commitment)1/2 of 1% of mortgage (50 bps). Credited to fees at closing. THIS MAYBE WAIVED FOR EXISTING 202′ S. HUD requires a minimum of 15 days to review closing documents. Typical closing times are within 30 days of rate-lock. This may be expedited with waivers from HUD, efficient reviews, etc. The above time line indicates 5 months for a closing with HUD. This time frame may be shortened to the extent that third parties (appraiser, engineer) can expedite their engagements.Please contact us now to insure the long term viability of your property

    Apply Here