|Loan Term & Amortization
||40-year (fully amortizing) plus construction period, or 75% of remaining useful life.
|Maximum Loan to Value-
And Substantial Rehab
No cash out. New loan amount is the lowest of:
- 90% of HUD Replacement Cost
- Maximum LTV as follows
• SNF/ILU: 80% (For Profit, 85% (Non-Profit)
• ALF: 75% (For Profit), 80% (Non-Profit)
- DSCR: 1.45x
||Yes- Construction and Permanent
New construction or substantial rehabilitation of Assisted Living, Memory Care, and Intermediate or Skilled Nursing facilities.
- Maximum processing occupancy of 95%
- Commercial space cannot exceed 10% of gross floor area or 15% of gross income
- Independent living units cannot exceed 25% of total units in the project (up to 30% if waiver is granted).
||Single Asset Entity (for profit or non-profit)
||Underwritten at a maximum 95% occupancy
|Tax and Insurance Escrows
||Monthly deposits required
||Maximum 10% of gross floor area and maximum 15% of gross potential income. (Day care space is not considered commercial.)
||Market Study, Appraisal, Architect Review of Construction Costs and Drawings and Phase I
||Negotiable. Generally two-year lockout with a 10% to 1% declining pre-payment penalty. Other pre-payment options are available.
||Negotiable. Generally two-year lockout with a 10% to 1% declining pre-payment penalty. Other pre-payment options are available. Assumable Subject to Arbor and HUD approval and payment of assumption fee
|Good Faith Deposit
||Negotiable based on project type
||Yes – sufficient to cover Arbor’s expenses and third-party report costs
|HUD Application Fee
||0.15% due to HUD at Pre-Application, 0.15% at Firm Application. If Borrower chooses non-refundable straight-to-firm HUD application, fee is the full 0.3%
|HUD Inspection Fee
||$5 per thousand of the mortgage amount for new construction and $5 per thousand of improvement costs for substantial rehabilitation.
||Borrower pays Arbor’s Counsel Fee and miscellaneous closing costs
||15% of the “as rehabbed” appraised value or replacement of two or more major building systems.
||Davis Bacon labor standards and wage requirements apply to construction and rehab work.
||The borrower must provide to HUD evidence/documentation from the appropriate local/state tax licensing authorities showing approval for the operation of the Project (or applicable portions thereof) prior to occupancy of the Project (or applicable portion thereof).
|HUD Mortgage Insurance Premium
||0.77% Market Rate; 0.45% Affordable; 1% MIP upfront at closing.