Acquisition Construction Financing


Financing for New Construction or Substantial Rehabilitation of Nursing Homes, Assisted Living Facilities and Specialized Use Projects.


  • Combines construction and permanent financing approved at the same time.
  • Maximum loan to value is 95% (90% for for-profits); term is 40 years with full amortization.
  • Loan is pre-payable, assumable, and non-recourse.
  • Requires a minimum 1.05x (1.11x for for-profits) debt service coverage based on a maximum of 95% occupancy.
  • Projects must comply with the State’s eligibility requirements for licensure and operating standards.
  • Construction and rehabilitation costs are subject to Davis-Bacon Wage Requirements.
  • Non-profit developer’s fee may be capitalized in loan and applied, if desired, to meeting the cash requirements at initial closing.


0.30% Application Fee to FHA
0.57% Mortgage Insurance Premium (0.45% for low income housing tax-credit deals)
0.50% Inspection Fee
2.00% Maximum Financing Fee
1.50% Maximum Placement Fee
2.00% Costs of Issuance for Tax-Exempt Bond Transactions

An annual 0.57% Mortgage Insurance Premium (0.45% for low income housing tax-credit deals) payable to FHA is required. Additional fees are required for third party market studies, environmental reports, appraisals, architectural reviews and cost reports. The cost of these reports may be included in the financing.


  • Full escrows required for property insurance, real estate taxes, and FHA mortgage insurance premium.
  • Replacement reserve escrow for on-going replacement of depreciable items is required for the term of the loan.
  • An operating deficit escrow may be required by FHA. This escrow must be funded by the borrower at closing with cash or a letter of credit.
  • Working Capital Deposit equal to 2% of the mortgage and escrow for Minor Movable Equipment of $450 per bed is required at closing. These deposits must be funded by the borrower at closing with cash or letters of credit.

NOTE: Under Lean processing, loans underwritten at statutory maximum limits and minimum debt service coverage ratios will be considered “higher risk” transactions and subject to more intense review.

Other Financing Programs

Lender/Investors:  investors tag.jpg Have Money to Place

Borrowers Looking for Capitalapply now.gif

Email us your a copy of your Loan Request or Business Plan



CFO Capital Partners, its affiliates and principals are not a United States Securities Dealer nor Broker nor US Investment Adviser.  CFO Capital Partners, its affiliates and principals is a  Consulting Firm and in some instances a Private Investor. All Emails and related correspondence are never to be considered a solicitation for any purpose in any form or content. We do not intend to, nor do we, provide investment advice or counsel to any particular transaction. You, as the Recipient, hereby acknowledges this warning and disclaimer. If acknowledgment is not accepted, Recipients must return the document copies, in their original condition, to the Sender via email or postal services immediately