Here are some of the questions we hear most often about our company, the types of services we provide, the application and approval process, and about general issues such as interest rates. Click a question to jump down top the answer, or scroll the page to review all of our answers to FAQ's.
When was Cambridge formed?
Cambridge is a mortgage banking company founded in 1983 by Jeffrey A. Davis, current Cambridge Chairman. In 1988 Andrew Erkes, current President of Cambridge Realty Capital Ltd. of Illinois (Cambridge Companies' government insured finance group) joined the company. Cambridge has completed over 210 transactions, over $1 billion in Senior Housing and Healthcare, and over $5 billion total financings, in 25 different states.
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Why work with Cambridge?
Cambridge has more than 20 years of experience in the real estate financing industry. Our in-depth knowledge of the Capital markets enables us to find the best possible available financing option for our clients. We offer a full range of Debt and Equity financing alternatives for all types of Senior Housing, Healthcare and multifamily facilities. Cambridge has been ranked by various organizations as among the country's leading financiers. We save time and energy for our clients by being a one-stop shop.
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What type of facilities does Cambridge finance?
Cambridge finances Nursing Homes, Assisted Living facilities, Congregate Care facilities, independent living facilities, acute care hospitals, behavioral Healthcare facilities and multifamily apartments related to retirement or Senior Housing.
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What type of debt or equity financing programs does Cambridge provide?
Cambridge has various Debt or Equity financing programs for the above-mentioned facilities. HUD, Fannie Mae, conventional, sale / leaseback, Joint Venture, and bridge loan programs are available for qualifying facilities.
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What is a HUD loan and how does it work?
The U.S. Department of Housing and Urban Development ("HUD") insures mortgages and Cambridge funds the loan. Cambridge takes on all responsibility for dialog with HUD including preparation of the application, underwriting and hiring of third party due diligence providers. Cambridge is an approved HUD lender and has been the number one lender for HUD 232 loans for Senior Housing and Healthcare industry in the market. Cambridge closes 95% of its HUD loans.
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How does Cambridge finance Fannie Mae loans?
Cambridge has a national Correspondent Relationship with American Property Financing Inc. ("APF") for Senior Housing products. APF is one of the top ten Fannie Mae DUS lenders in the country.
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How does Cambridge finance conventional and bridge loans?
Cambridge has a network of private lenders and Wall Street firms for conventional and Bridge Financing. Cambirdge is also an agent of Transamerica Commercial Real EState Finance's bridge loan program for assisted and independent living facilities.
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Do Cambridge loans require personal recourse?
No. HUD and Fannie Mae loans are non-recourse for the Borrower. Also, most conventional bridge loans do not require personal recourse.
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Are interest rates high?
No! Mortgage interest rates are currently the lowest in 40 years. Cambridge will give you the lowest interest rate possible through our expertise in the Capital markets. Most HUD loans will be around 150 to 175 basis Points over 10 year Treasuries rates, and most Fannie Mae loans will be around 200 basis Points over 10 year Treasuries rates. HUD and Fannie Mae loans are fixed-interest rates and they never change over the life of the loan; therefore, you are not effected by market fluctuations. Interest rates for bridge loans are based on 90 day LIBOR (London Interbank Offer Rate) + 4%.
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What is the loan term and amortization?
HUD loans will have 30, 35 or 40 years of term and Amortization depending on the transaction. Fannie Mae loans usually have 10 years of term and 25 years of Amortization but they can also be structured differently. Most bridge loans are interest only with 3 years term.
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Is there a minimum loan amount?
Yes. Cambridge processes loans for properties whose value exceeds $1.5 million for HUD transactions, exceeds $3 million for Fannie Mae transactions and exceeds $5 million for bridge loans.
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Is there a specific level of occupancy required for a facility?
Yes. HUD loans require occupancy of approximately 80% for the facility's market, and Fannie Mae loans require 90% occupancy for a minimum of 90 days. Conventional and bridge loan occupancy requirements vary by lender and investor.
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What is the expected closing time for these loans?
Bridge loans and Fannie Mae loans will close within 2-3 months. HUD loans usually close within 4-6 months, depending on the transaction type; however, in some cases it may take up to a year to close the loan.
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Does Cambridge require the borrower to be experienced?
Yes, we want the Borrower to have experience in the Senior Housing and Healthcare industry.
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What type of equity programs does Cambridge have?
Cambridge has Joint Venture Equity financing available for existing Assisted Living, Nursing Home, Independent Living and Congregate Care facilities.
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Will Cambridge do sale / leaseback transactions?
Yes. Cambridge will buy the property you own or operate (or want to operate), and lease it back to you. This enables you to preserve your working Capital. Cambridge is interested in several types of facilities for sale / leaseback: Nursing Homes, Congregate Care and Assisted Living facilities anywhere in the United States.
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We are a financial institution and would like to sell mortgages on senior housing properties. Does Cambridge buy such mortgages?
Yes. Cambridge will purchase first mortgage loans, Second Mortgage loans, bridge loans, standing mortgage loans, preferred Equity loans, mezzanine mortgage loans, and construction mortgage loans. We can buy directly from institutions or a current Borrower. Cambridge will also purchase properties for prospective acquisition candidates. The status of the mortgage can be performing, sub-performing, non-performing or in Default.
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Does Cambridge have any geographical preferences?
No. Cambridge has national scope and affiliates throughout the country. We have either regional offices or correspondent offices in Boston, Chicago, Los Angeles and New York.
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What kind of information does Cambridge need to analyze the transaction?
We need financial statements for the last three calendar years and current year to date; current rent roll information; historical occupancy numbers; and a write up about the transaction. Our detailed checklist is available upon request.
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What is The Signature Experience™?
The Signature Experience™ is Cambridge's exclusive trademarked client empowerment process. It focuses on developing relationships, finding ideal Capital structures and solutions, and closing and Funding Debt and Equity financing transactions for owners and brokers. The integral components of The Signature Experience™ include The Galileo Process™, which focuses on building relationships; The Pivotal Process™, which focuses on providing client direction; The Maximizer Experience™, which focuses on changing relationships and discussions into real transactions; and, finally, The Signature Solution™, which focuses on closing the transactions.
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