Commercial Building Financing For HealthCare Practices!
Medical Professionals - Nationwide Financing
The Loan Program:
Property Type:
HealthCare professional properties including both condo and independent facilities.
Loan Limits:
Loan Amounts Starting at $250,000 and the loan-to-value ratio may not exceed 90%. The minimum debt service coverage ratio must be at least 1.20.
Occupancy Requirements:
For underwriting purposes the building must be occuppied 51% with the medical practice professional.
Underwriting Assumptions:
Operating cash flow (with primary reliance on medical practice cashflow for 36 months results) will generally be adjusted for underwriting purposes.
Borrowing Entity:
Generally, a single purpose entity is required.
Loan Term:
20 years with amortization based on 20 years.
Rates:
Interest rates are adjusted quarterly based on Prime Rate.
Fees:
The borrower is responsible for all closing costs and required reports (appraisals, engineering and environmental reports, surveys, etc.).
Guarantees:
The loans are generally recourse to borrower.
Assumable:
No.
Reserves: Tax and insurance reserves are required. Also, a capital reserve escrow will be established and funded monthly based on a rate of not less than 1/12 of 5% of gross annual revenues.
Prepayment:
Prepayment is customarily permitted after 5 years. Special prepayment terms may be available where required.
Property Type:
HealthCare professional properties including both condo and independent facilities.
Loan Limits:
Loan Amounts Starting at $250,000 and the loan-to-value ratio may not exceed 90%. The minimum debt service coverage ratio must be at least 1.20.
Occupancy Requirements:
For underwriting purposes the building must be occuppied 51% with the medical practice professional.
Underwriting Assumptions:
Operating cash flow (with primary reliance on medical practice cashflow for 36 months results) will generally be adjusted for underwriting purposes.
Borrowing Entity:
Generally, a single purpose entity is required.
Loan Term:
20 years with amortization based on 20 years.
Rates:
Interest rates are adjusted quarterly based on Prime Rate.
Fees:
The borrower is responsible for all closing costs and required reports (appraisals, engineering and environmental reports, surveys, etc.).
Guarantees:
The loans are generally recourse to borrower.
Assumable:
No.
Reserves: Tax and insurance reserves are required. Also, a capital reserve escrow will be established and funded monthly based on a rate of not less than 1/12 of 5% of gross annual revenues.
Prepayment:
Prepayment is customarily permitted after 5 years. Special prepayment terms may be available where required.