Assisted living facility financing is now available for purchases, refinances, and even new construction!
Loans for acquisition or refinancing
Our assisted living facility financing programs include a long-term, low-interest rate solution for existing facilities, which will assist you in acquiring a new facility with a low down payment and favorable terms, as well as refinancing your existing debt into a new loan to reduce interest expenses and increase cash flow. We even provide cash-out plans that allow you to make improvements or additions.
Construction Financing
This funding is not available through the HUD program. We provide one of the few construction finance options for assisted living facilities that is not subject to HUD approval. Funding is available from $2,000,000 to $50,000,000. The ideal range of funding, where we see the most success, is between $10,000,000 and $38,000,000.
Dividend America created this intriguing new service as an alternative to lengthy HUD programs. Assisted Living Facility Construction Loans with Dividend America allows developers to avoid the costly delays associated with HUD and USDA B&I programs!
- Avoid the significant delays involved with HUD applications. No dealing with SBA 504 and CDC debentures or sophisticated funding techniques.
- In the building financing process, work with experienced underwriters.
- Professionals who understand the needs of developers and construction lenders handle draw requests, work order revisions, and other issues.
Popular markets for assisted living facility loans include Atlanta, Georgia, Phoenix, Arizona, Charlotte, North Carolina, Jacksonville, Florida, Austin, Texas, Greenville, South Carolina, and Dallas, Texas. Other markets include Raleigh, North Carolina; Ashville, North Carolina; San Diego, California; and Chicago, Illinois. A variety of marketplaces appear to be particularly popular for securing loans for assisted living facility construction.
For assisted care facilities, the majority of business loans combine a commercial mortgage with a business loan. Construction financing for assisted living facilities often consists of a commercial mortgage that funds the land development and building construction, as well as a business loan that provides the capital required to get the equipment and business functioning.
Construction Loan Features:
- The minimum loan amount is $10 million, with no maximum.
- Loan to Cost (LTC): 75%.
- Term: 5-7 years of construction to mini-perm
- Amortization: The first two years (the building phase) are interest-only. After that, amortization varies depending on project strength, although most projects have a 25-year amortization period.
- Rate: Variable or Fixed Options The variable is WSJ Prime plus around 250 bps, or… Fixed rates range from 6–7%.
- There is no prepayment penalty.
- Recourse: Normally, a personal guarantee is necessary, but we can negotiate this based on the agreement’s soundness.
The sponsor can “buy down” the remedy with more equity participation (lower LTC).
Dividend America provides loans that pay dividends for your business.
We offer a variety of loans for assisted living facilities and funding for medical office buildings. Loans for development, building, commercial businesses, and the purchase of an assisted living facility. We specialize in providing business loans for medical office buildings and assisted living facilities, often combined with small business loans or equipment financing. Even when banks say no, we get them done!
If you have any questions, please call (571) 544-6600. Thank you for this opportunity to serve.
FAQ
What types of financing options are available for assisted living facilities?
We provide loans for the acquisition, refinancing, and renovation of assisted living facilities.
What are the benefits of refinancing an existing assisted living facility?
Refinancing allows you to secure a new loan with favorable terms, potentially reducing interest expenses and increasing cash flow. It can also provide a chance for cash-out plans to make improvements or additions to the facility.
What is the minimum and maximum loan amount for construction financing?
Our construction financing ranges from $2,000,000 to $50,000,000, with the most successful projects falling between $10,000,000 and $38,000,000.
How does your construction financing differ from HUD programs?
Our construction financing offers an alternative to lengthy HUD programs, avoiding significant delays. It’s not subject to HUD approval, providing a faster and more efficient funding option.
For assisted living facility loans, what markets do you typically serve?
We primarily serve markets such as Atlanta, Phoenix, Charlotte, Jacksonville, Austin, Greenville, Dallas, Raleigh, Ashville, San Diego, and Chicago, among others.
What is the typical structure of construction financing for assisted living facilities?
Construction financing usually consists of a commercial mortgage for land development and building construction, combined with a business loan for equipment and operational capital.
What are the key features of your construction loan?
Our construction loan offers a minimum amount of $10 million with a loan-to-cost (LTC) ratio of 75%. The term is typically 5-7 years, with interest-only payments during the building phase and variable or fixed-rate options thereafter.
Is a personal guarantee required for construction financing?
Normally, a personal guarantee is necessary, but we can negotiate this based on the agreement’s soundness. The sponsor can also adjust the terms by increasing equity participation.
What sets Dividend America apart in the assisted living facility financing industry?
We offer loans that pay dividends for your business, specializing in financing medical office buildings and assisted living facilities. Even when banks say no, we strive to find solutions and get the job done.
How can I get more information or apply for assisted living facility financing?
For more information or to inquire about financing options, please call us. We are grateful for the opportunity to serve you and address any questions or concerns you may have.
