COMMERCIAL LOAN PRODUCTS

Marketplace Commercial Partners provides specialty commercial financing and financing programs through an exceptional group of professionals. With a service-oriented culture, supported by a strong ethical approach, we bring expertise to the financing process in many niche options. Our goal is to be best in class through ethics and excellence, today and tomorrow.

Marketplace Commercial Partners offers a variety of products and financing structures for senior housing and multi-family properties. This allows us the flexibility to review each deal on an individual basis and provide a financing solution that benefits everyone involved in the transaction.

In this complicated market environment, Fannie Mae, Freddie Mac and HUD (Government Sponsored Entities or GSE’s) continue to play an important role providing liquidity to the marketplace.

Section 232 and Section 232/223 (f)

Mortgage Insurance for Nursing Homes, Intermediate Care, Board & Care and Assisted-living Facilities

Summary:
Section 232 insures mortgage loans to facilitate the construction and substantial rehabilitation of nursing homes, intermediate care facilities, board and care homes, and assisted-living facilities. Section 232/223(f) allows for the purchase or refinancing with or without repairs of existing projects not requiring substantial rehabilitation.

Purpose:
Section 232 insures lenders against the loss on mortgage defaults. Section 232 insures mortgages that cover the construction and rehabilitation of nursing homes and assisted living facilities for people who need long-term care or medical attention. The program allows for long-term, fixed-rate financing (up to 40 years) for new and rehabilitated properties and (up to 35 years) for existing properties without rehabilitation that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities. For a complete description.

Section 223(f)

Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing

Summary:
Section 223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing. These projects may have been financed originally with conventional or FHA insured mortgages. Properties requiring substantial rehabilitation are not eligible for mortgage insurance under this program. HUD permits the completion of non-critical repairs after endorsement for mortgage insurance.

Purpose:
Section 223(f) insures lenders against loss on mortgage defaults. The program allows for long-term mortgages (up to 35 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage-Backed Securities. This eligibility for purchase in the secondary mortgage market improves the availability of loan funds and permits more favorable interest rates. For a complete description.

Section 221(d)(3) and Section 221(d)(4)

Mortgage Insurance for Rental and Cooperative Housing

Summary:
Sections 221(d)(3) and 221(d)(4) insure mortgage loans to facilitate the new construction or substantial rehabilitation of multifamily rental or cooperative housing for moderate-income families, elderly, and the handicapped. Single Room Occupancy (SRO) projects may also be insured under this section.

Purpose:
Section 221(d)(3) and Section 221(d)(4) insures lenders against loss on mortgage defaults. Section 221(d)(3) is used by not for profit sponsors and Section 221(d)(4) is used by profit-motivated sponsors. Both programs assist private industry in the construction or rehabilitation of rental and cooperative housing for moderate-income and displaced families by making capital more readily available. The programs allow for long-term mortgages (up to 40 years) that can be financed with Government National Mortgage Association (GNMA) Mortgage Backed Securities.

The principal difference between the (d)(3) and (d)(4) programs is the amount of insured mortgage available to non-profit and profit motivated sponsors. Under Section 221(d)(3), nonprofit sponsors or cooperatives may receive an insured mortgage up to 100 percent of HUD/FHA estimated the replacement cost of the project. Profit motivated sponsors using Section 221(d)(4) and all types of sponsors under Section 221(d)(4) can receive a maximum mortgage of 90 percent of the HUD/FHA replacement cost estimate. For a complete description.

Section 202

Supportive Housing for the Elderly Program

Summary:
HUD provides capital advances to finance the construction, rehabilitation or acquisition with or without rehabilitation of structures that will serve as supportive housing for very low-income elderly persons, including the frail elderly and provides rent subsidies for the projects to help make them affordable.

Purpose:
The Section 202 program helps expand the supply of affordable housing with supportive services for the elderly. It provides the very low-income elderly with options that allow them to live independently but in an environment that provides support activities such as cleaning, cooking, transportation, etc. The program is similar to Supportive Housing for Persons with Disabilities (Section 811). For a complete information.

Section 223(a)(7)

Property Type:
Multifamily rental housing, elderly housing, assisted living facilities and nursing homes with an existing FHA insured loan.

Purpose:
The refinance of an existing FHA insured loan in an expedited time frame with lower transaction costs than those associated with a new FHA insured loan.

Conventional Debt Mortgage Financing

Combining our vast industry knowledge and capital markets expertise, we provide proven debt and equity financing solutions to senior housing owners and investors. When you bring your financing needs to us, we will work to find just the right scenario that will fit your specific situation and provide the capital you seek.

Conventional debt financing often times will provide the appropriate ingredient for successful financing. We have an extensive network of conventional senior housing and multi-family lenders. Clients always give us high marks when we provide conventional debt placement under a bridge loan to HUD, cash-outs, straight refinancing, or any other solution tailored to the outcome you are looking for.

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