This category includes the following types of real estate:
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 Apartments/condominiums
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Nursing homes
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Retirement homes
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These categories are generally quite appealing to the lending community, particularly the apartment sector. Retirement homes and nursing homes have become more popular with lenders as consolidation has occurred in the industry.
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Financing Terms Available:
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Interest Rate
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fixed and floating interest rates are
available as well as a "float to fix" pricing option which allows a borrower to select a floating interest rate (based on bank prime or bankers acceptances) and have the opportunity to "lock-in" or fix the interest rate at a later date.
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Terms
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1 to 20 years are available.
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Amortization
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up to 25 years.
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Minimum Debt Service
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normally 1.20:1.
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Loan to Value
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up to 80% of the appraised value.
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Non-Recourse Financing
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Recourse versus non-recourse
financing is generally determined on
a deal by deal basis. In stable
economic times, non-recourse
financing is generally more widely
available. Limited and several guarantee structures are
sometimes also negotiable (as opposed to a full guarantee).
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