Assisted Living Facility Financing

Assisted living facility financing for acquisitions, refinances, and even new construction is available now!

Acquisition and refinance loans

For existing facilities, our assisted living facility financing programs include a long-term, low interest rate solution that will help you to acquire a new facility with a low down payment and great terms or to refinance your existing debt into a new loan to reduce your interest expense and to increase your cash flow. We even have cash-out programs that will allow you to do renovations or expansions.

Construction Financing

This financing is NOT at HUD program.  We have one of the only construction loan programs for assisted living facilities that is not dependent on HUD approval.  Funding is available from $2,000,000 up to $50,000,000.  The ideal range of funding where we see the most success is from $10,000,000 to $38,000,000.

Senior Living FacilityThis  exciting new program was designed to be an alternative to lengthy HUD  programs.   Assisted Living Facility Construction  Financing through Dividend America means that developers can avoid costly  delays associated with HUD and USDA B&I programs!

  • Avoid the huge  delays associated with HUD approvals No dealing with SBA  504 and CDC debentures and complicated funding strategies
  • Deal with  underwriters accustomed to the construction loan process
  • Draw requests,  work order changes and other issues handled by professionals well versed in the  needs of developers and construction lending.

Popular  markets for Assisted Living Facility lending includes; Atlanta, GA, Phoenix,  AZ, Charlotte, NC, Jacksonville, FL, Austin, TX and Greenville, SC, Dallas TX.  Other markets include Raleigh, NC, Ashville,  NC, San Diego, CA, and Chicago, IL.  Loans  for Assisted Living Facility Construction can be obtained in many markets but  these seem to be very popular.

Most  business loans for assisted living facilities are a combination of a commercial  mortgage and commercial business loan.   Construction financing for Assisted Living Facilities usually takes on  this combination with the commercial mortgage funding the land development and building construction funding and the business loan providing the capital  needed to get the equipment and business sup and running.

Apply Here ButtonConstruction Loan Features

  • Loan Amounts:  $10MM minimum, No max
  • Loan to Cost – 75% (LTC)
  • Term:  5-7 Year Construction to mini-perm
  • Amortization:  First 2 Years (construction phase) is  Interest only, after that amortization varies by strength of project but most
    projects will receive 25 year amortization period.
  • Rate:  Variable or Fixed options Variable is WSJ  Prime plus roughly 250bp  … or … Fixed rate range  is 6-7%
  • Prepayment Penalty:  None
  • Recourse:  Some Personal Guarantee typically required however this is negotiable depending on strength of deal.
    • Sponsor can also “Buy Down” the recourse with higher Equity Participation (lower LTC)

 Dividend America offers the loans that pay dividends  for your business.

We have all types of loans for assisted living  facilities and financing for medical office buildings.  Development loans, construction loans, commercial business loans and assisted living facility purchase loans.  Business loans for medical office buildings  and assisted living when combined with a small business loan or with equipment  financing  are our specialty. We get them  done even when banks have said NO!

If you have any questions I invite you to call.  Thank you for the opportunity to serve,

Michael Gross