Health Care Property Loans, Medical Financing   

We are still closing health care property loans, you are not wasting your time.  This is one of our preferred segments of the industry and we invite you to take a moment to fill out our loan pre approval form so that we can give you real, meaningful answers.  We have access to some of the best programs in the nation (like 10 year fixed rates, 30 year amortizations scdeules, low rates and financing up to and beyond 100% (only for medical practitioners).  Note that we never charge any type of application fees/retainers - we stand by our closings. 

Owners evaluating medical office building loans have some of the best finance options available in the market.  This is a broad category and finance options/potential structures vary widely based on such factors as loan amount, owner occupied or investment, strength of owner, cash flow, liquidity, etc. In addition, the type of office building itself, dictates options as well.  For example, a commercial condo loan will differ from a medical office building or nursing facilty loan.

Recent Medical Loan Related Articles:    Medical Financing for Commercial RE        Medical Financing Construction Loans    Medical Property Loans

Medical Financing 

Below is a brief discussion on the underwriting criteria found with most medical office building loans.  Note though that each situation is different and this is only meant to be an overview.  Call to discuss your specific situation.   248 885-8797

Health Care Property Loans - LTV

Loan to value restrictions range widely.  Conventional loans and commercial loans provided by life insurance capiatal are normally capped at 80% on a rate and term refinances and 75% loan to value on cash out refinances.  However, higher LTV’s are commonly available, with the ability to roll in equipment and lines of credit/working capital.    

On purchase transactions LTV restriction will be as high as 90% financing with both SBA as well as non SBA options.  We have access, to several lenders that will bring finance level to above and beyond real estate/purchase price, as well.  These programs are only available to medical practitioners.   

Commercial Doctor Loans - DCR

Debt Service Coverage Ratio restrictions are typically set at 1.2 for both investors and owner occupants of medical office properties.  Meaning that for every $1.20 of net income (income after all expenses, taxes, insurance etc have been paid) the property/practice produces, the mortgage payment will not exceed $1.00.  Said in another way, after all expenses and the mortgage has been paid, the owner will need to net $.20 to qualify.

Many exceptions are made with this rule for medical practioners.  For example, projection loans are common within this segement, that can off set any negitive trends or lack of current cashflow.   Also note that the our SBA 7a loan will allow projections as well as DSCR as low as .8.  

Property Analysis

Market value and market rent is very important and will be evaluated and compared to the subject property.  Age, appearance, location, accessibility, and local market conditions, as well as other factors are considered. 

Credit Worthiness

The personal credit worthiness of the borrower will be scrutinized.  680 credit score is normally the minimum for the best finance options.  Exceptions can be made on this as well with some conventional lenders considering scores as low as 640.  SBA loans awell can go below 600 as well.  The overall strength of the borrower, cash flow, liduidity, and LTV can offset concerns on low credit scores. 

We have some of the best medical financing loan options in the market today.  Get meaningful answers now by getting pre approved. 

248 885-8797 

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Commercial Finance Advisors, Inc.
(248) 885-8797 Phone
(866) 337-3141 Fax
http://www.cfa-commercial.com/

Main Office
261 E Maple Rd
Birmingham, Michigan 48009

Second Office
Roanoke, Virgina

 

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