What are Uniform Federal Accessibility Standards (UFAS)?
The Uniform Federal Accessibility Standards, or UFAS, are a series of rules that establish the minimum elements required to comply with federal accessibility standards for handicapped individuals.
What is Residential Care?
Residential care is defined as long-term care for senior citizens in a residential setting.
What are Replacement Reserves?
Replacement reserves are funds that are earmarked for replacing building components and equipment which will wear out over time.
What is a Skilled Nursing Facility?
Skilled nursing facilities are state-licensed, long-term care facilities that offer round-the-clock care for residents dependent on nursing care.
What is a Senior Housing?
Senior housing is a general term denoting housing suitable for older adults. This type of housing emphasizes safety and accessibility. Options range from round-the-clock care facilities to independent living communities. HUD 232 loans can finance many types of senior housing facilities, but facili
What is Underwriting?
Underwriting is the lender’s process of determining if a borrower meets their criteria for a loan.
What is a Nursing Home?
A nursing home is a residential care facility for elderly individuals who cannot be cared for at home, but who don’t need hospital care.
What is Rehabilitation?
Rehabilitation is defined as the tools, materials, labor, and other costs associated with improving buildings, excluding routine and/or minor repairs.
What is the ORCF (Office of Residential Healthcare Facilities)?
The Office of Residential Healthcare Facilities, or ORCF, is a subdivision of the Office of Healthcare programs, or OHP, that oversees HUD-insured healthcare financing programs, like the HUD 232 loan program.
What is Prepayment?
Prepayment is paying off a loan balance before maturity (the end of the loan term).
What is Recourse?
If a loan is recourse and borrower defaults (fails to repay a loan), the lender can seize both the collateral used in securing the loan and the borrower’s assets which are not used as collateral.
What is NOI (Net Operating Income)?
NOI, or net operating income, is calculated by taking a property’s gross income and subtracting reasonable operating expenses.
What is Renovation?
Rehabilitation involving 75% or less of a facility or building’s value before rehabilitation.
What is the OHP (Office of Healthcare Programs)?
The Office of Healthcare Programs, or OHP, is a division of HUD’s Office of Housing that administers FHA healthcare programs like the HUD 232 loan program.
What are Non-Recourse Loans?
Non-recourse loans are loans for which, if a borrower defaults, they cannot be held personally liable.
What is MIP (Mortgage Insurance Premium)?
MIPs, or mortgage insurance premiums are annual payments on HUD mortgages, paid at closing and annually.
What is an Interest-Only Fixed-Rate Loan?
An interest-only fixed-rate loan is one in which a borrower pays only interest at a fixed rate and nothing towards the principal of their mortgage loan.
What is the FHA?
The Federal Housing Administration, or FHA, is part of the U.S. Department of Housing and Urban Development, is a government agency which operates a range of loan insurance programs, but makes no loans and builds no properties.
Who is Classified as Frail Elderly?
If someone is classified as frail elderly, they are an older adult who cannot perform at least three daily living activities such as bathing, eating, dressing, grooming, or home management activities.
What is Loan-to-Value Ratio (LTV)?
Loan-to-value ratio, or LTV , can be calculated by taking the amount of a loan and dividing it by the value of the underlying asset.
What is the U.S. Department of Housing and Urban Development (HUD)?
The U.S. Department of Housing and Urban Development, otherwise known as HUD, is a federal government agency that develops, oversees, and executes housing policies, especially regarding affordable and sustainable housing.
What is a HUD-Held Loan?
A HUD-held property is an a property with an FHA-insured loan that is now owned by HUD.
What is Leverage?
Leverage is the concept of financing assets with borrowed money. It can also be defined as the amount of debt used to finance an asset, which is typically used as collateral for the purchase.
What is Loan-to-Cost Ratio (LTC)?
Loan-to-cost ratio, or LTC, is a metric comparing the amount of a project’s financing to its construction costs.
What is a HUD-Approved Lender?
A HUD-Approved lender is one which can offer HUD 232 senior financing and other HUD-insured loans.
What is HUD LEAN?
The HUD LEAN program is a streamlined method of processing HUD 232 applications patterned after Toyota’s operational processes.
What is a Fixed-Rate Mortgage?
Fixed-rate mortgages have with monthly payments with interest rates that do not change.
What is FHA Mortgage Insurance?
FHA mortgage insurance prevents against loan defaults and produces less risk for lenders.
What is a Firm Commitment?
A firm commitment, also known as ‘firm commitment underwriting’, is a lender’s promise to enter a loan agreement with a borrower.
What is an FHA-Insured Loan?
FHA-insured loans are mortgages backed by FHA mortgage insurance.
What is a Market Capitalization Rate (Cap Rate)?
A market capitalization rate, or cap rate, is a value that compares different real estate investments.