office 480.682.4501
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BK-0910597
Under section 232 of the National Housing Act, the FHA provides mortgage insurance to facilitate the new construction, substantial rehabilitation, and permanent financing for independent and assisted living facilities, special needs Alzheimer/dementia care facilities, and skilled nursing facilities
The unique demands and processes of HUD/FHA multifamily financing are generously offset by the advantages. Additionally, HUD's MAP program (Multifamily Accelerated Processing) coupled with Venture streamlined internal procedures and staff of dedicated professionals bring greater speed and efficiency to meet the accelerating needs of today's market
(For a Printable PDF of this program, please click here)
Eligibility For new construction, substantial rehabilitation, and acquisition/refinance of properties classified as assisted living, nursing home, intermediate care, and board & care.
Loan Amounts No maximum
Term/Amortization Up to 36 month construction term Up to 35 year term (acquisition/refinance) Up to 40 year term (permanent loan) All loans fully amortizing
Interest Rate Fixed rate are established after issuance of a firm commitment by HUD and are based on current market conditions. Permanent and construction rates are fixed prior to the start of construction. Call for current rates
Debt service coverage ratio 1.11x minimum (new construction) 1.17x minimum (acquisition/refinance)
Loan to value Acquisition/refinance 85% maximum (standard) 90% maximum (non-profits) New Construction 90% maximum (based on total replacement cost)
Personal recourse Non-recourse
Prepayment If loan converts to a Ginnie Mae, a five year lock-out period then a declining prepay schedule normally applies (5%, 4%, 3%, etc..) but alternate lock-out and prepayment options are available
Financing Fee Negotiable and competitive
Third Party Fees Fee includes cost of appraisal, phase I environmental, physical needs assessment, and lender due diligence. Borrower is responsible for legal fees and customary closing costs. All due diligence fees are refundable at closing
Venture Placement Fee 1% to 2% dependent on property