healthcare
Assisted Living
Refinance/Moderate Rehab
Owners of existing assisted living facilities needing to finance capital improvements or to replace major movable equipment may be able to do this in conjunction with an FHA refinance. The 35-year fixed rate FHA loan can accommodate moderate rehabilitation costs up to 15% of value subject to other constraints. For projects with FHA financing in place, a streamlined refinance program is available. Some capital improvements can be financed under this program but the total loan amount cannot exceed the loan amount of the FHA loan being refinanced. Click here for a term sheet with more details.
Sub Rehab
There is no better financing vehicle for substantial rehabilitation of a licensed assisted living facility than FHA. FHA provides a fixed rate construction-permanent loan that covers the acquisition or refinance of existing debt and construction hard and soft costs and then converts to a 40-year full-amortizing fixed rate loan. FHA will finance up to 80% of stabilized value (85% for nonprofits). Click here for a term sheet for nursing home substantial rehabilitation transactions.
New Construction
There is no better financing vehicle for a new licensed assisted living facility than FHA. Just like the apartment program, FHA provides a fixed rate construction-permanent loan that covers construction hard and soft costs and then converts to a 40-year full-amortizing fixed rate loan once construction is complete. FHA will finance up to 80% of stabilized value (85% for nonprofits). Click here for a term sheet that summarizes the terms for assisted living new construction transactions.
Acquisition
FHA acquisition loans will finance up to 80% of the acquisition cost of assisted living facilities. The loan will be fixed rate with a term up to 35 years with a very attractive interest rate. Most often, the time required to obtain state approvals for the new owners will provide sufficient time for FHA processing. If timing becomes an issue, Rockhall has access to acquisition bridge capital that will enable us to close while the loan is still in the processing stage at FHA. If a facility currently is insured with FHA, the buyers can assume the existing debt or do a streamlined refinance. The new loan can’t exceed the original balance of the FHA loan being refinanced. Our originators would be happy to determine the FHA program that is the best fit for what you want to do.