Skilled Nursing/Assisted Living-Cash Out
Our lender has custom designed and underwrites this exclusive program allowing facility owners more leverage in accessing cash, while positioning their property for permanent financing. 

The Process:
Lender conducts an initial evaluation of the transaction to determine its viability for conventional bridge and permanent HUD financing.  If acceptable, a bridge loan application is issued simultaneously with a separate application and agreement, exclusively engaging the Lender to provide the permanent financing.  The bridge loan will be funded at 85% of the value, with proceeds advanced at 75%.  The lender holds the remaining 10% as "collateral". 

Once the bridge loan is settled, it is aged for a period of at least 12 months.  Concurrently, the permanent financing portion of the transaction is processed in an effort to finalize  HUD approvals. 

The permanent mortgage "takes out" the bridge loan, providing the applicant with the return of the 10% collateral and a low fixed rate, 35 year term, no recourse, fully assumable mortgage.

Bridge Loan Program Features:

Up to 85% LTV possible
25 Year amortization
24 month term (12 month extension possible)
$2M Minimum, no maximum loan amount
Interest only-market spread over LIBOR rate
Personal recourse
Pre-payment-Waived with Lender takeout
Minimum Debt Service Coverage of 1.25-1.35 to 1.00

Third-party expenses and loan costs payable when Lender letter of engagement is issued.  Rates and Terms determined by LTV, credit, property type and other conditions.  Lender makes final determination of Property's ability to qualify under HUD 232/223(f) guidelines. This is limited information and meant for general reference purposes.