FHA® 232/223(a)(7):
REFINANCING HUD-INSURED HEALTHCARE LOANS
Arbor provides streamlined refinancing of existing FHA-insured loans nationwide. Refinance costs, such as prepayment, are included.
| Loan Term & Amortization | Remaining term of the existing loan plus up to 12 years (subject to HUD approval); term cannot exceed the original term of the existing loan; loan is fully amortizing through the term of the loan |
| Loan Amount | No cash-out; new loan amount is the lowest of:
|
| Interest Rate | Fixed rate subject to market conditions at time of rate lock |
| Eligible Properties | Healthcare facilities currently insured under Sections 232 and 232/223f |
| Eligible Borrower | Single asset entity (for profit or nonprofit) |
| Cash Out | Not allowed |
| Tax & Insurance Escrows | Monthly deposits to the escrows are required for property insurance, real estate taxes, reserves for replacement and mortgage insurance premiums |
| Recourse | Non-recourse |
| Required Reports | New Property Condition Needs Assessment (PCNA) required if last report is over two years old |
| Prepayment | Typically 10% year one, declining 1% per year; other prepayment options available subject to market conditions |
| Assumable | Subject to Arbor and HUD approval and payment of assumption fee |
| Good Faith Deposit | Based on property type and loan size |
| Expense Escrow | Yes – sufficient to cover Arbor’s expenses and third-party report costs |
| Origination Fee | Negotiable |
| HUD Application Fee | 0.15% of the new loan amount paid to HUD with HUD application |
| HUD Inspection Fee | Not applicable |
| Legal/Closing Fee | Borrower pays Arbor’s counsel fee and miscellaneous closing costs |
| Repairs | Repairs approved by HUD can be funded by mortgage proceeds with 10% completion assurance required from owner; repairs limited to $1,500 per unit |
| Davis Bacon | Not applicable to this program |
| HUD MORTGAGE INSURANCE PREMIUM (MIP) | 0.50% up front; market rate 0.55% annually; LIHTC 0.45% annually |
V030419