Commercial Real Estate Division

Commercial Real Estate - HUD FHA 232

HUD FHA Section 232 Healthcare Loan Program Guidelines:

Eligible Properties:

  • Section 232 provides commercial mortgages for assisted living facilities, skilled nursing, skilled nursing and intermediate and memory care properties meeting the following requirements::

    • ​Must provide continuous care.

    • Must offer three meals per day.

    • Facility must be licensed by appropriate government entity.

    • May include up to 25% non-licensed independent living units.

    • 20 bed minimum.

    • Operating leases to qualified facility operators are permissible, subject to HUD approval.

    • The facility must have been completed or substantially rehabilitated for at least three years prior to the date of the application. Projects with additions completed less than three years previous are eligible as long as the addition was not larger than the original project size and number of beds.

Commercial Space:

  • Commercial space is limited to 20% of gross floor area and commercial income is limited to 20% of gross income.

Maximum Loan Amount:

  • ​​80% of appraised value (85% for non-profits).

Maximum CLTV:

  • 100% is possible with Joint Venture

Eligible Locations:

  • All 50 states, Puerto Rico, U.S. Virgin Islands, and Guam.

Fixed Rate Term:

  • 35 years not to exceed 75% of remaining economical useful life or improvements.

Minimum DSCR:

  • 1.45.

Prepayment Penalty:

  • Negotiable - typically a two-year lock out followed by a step down premium (e.g. 8,7,6,5,4,3,2,1).

Guarantee:

  • Non-recourse for most loans subject to standard carve-outs.

Assumable:

  • Yes, subject to lender approval.

Escrows:

  • Tax and Insurance Impounds: Required.

  • Replacement Reserves: Required - Monthly deposit required and amount depends on property condition.

  • Initial Deposit to Reserve Fund: Required - One time deposit may be required depending on property condition.

  • Critical and Non-Critical Repair Escrow: May be required for properties with life, safety, health or code related repair and/or maintenance concerns.

Third Party Reports:

  • Appraisal, Market Study, Phase I Environmental, Engineering Report and Seismic where applicable.

Sponsor Requirements:

  • Experienced owner operators.

  • Minimum credit and financial capacity requirements.

 

 Synergy Capital Markets

9453 De Soto Avenue

Suite M

Chatsworth, California 91311
 

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Synergy Capital Markets, is an institutional alternative real estate finance investment adviser, investor and underwriter. Synergy Capital Markets does not offer, and does not offer to provide any broker dealer or market maker services. Synergy Capital Markets operates this website at www.SynergyCapitalMarkets.com (referred to as the “Website”). By accessing this Website and any pages thereof, you agree to be bound by its Terms of Use and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. We do not provide financial planning services to individual investors. Synergy Capital Markets does not provide tax advice and does not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this Website, and are encouraged to consult with their own financial advisor, attorney, accountant, and any other professional that can help you / them to understand and assess the risks associated with any real estate investment opportunity. Full Disclosure

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