Frequently Asked Questions
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. 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 400 transactions, over $4.5 billion in Senior Housing and Healthcare, and over $5 billion total financings, nationwide.
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.
What type of facilities does Cambridge finance?
Cambridge finances Nursing Homes, Assisted Living facilities, Congregate Care facilities, independent living facilities, and acute care hospitals.
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, conventional, sale / leaseback, Joint Venture, and bridge loan programs are available for qualifying facilities.
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. For the new HUD Lean program, Cambridge has compiled a HUD Lean FAQ to answer many questions one may have about this new program.
How does Cambridge finance conventional and bridge loans?
Cambridge has a network of private and institutional lenders and Wall Street firms for conventional and Bridge Financing.
Do Cambridge loans require personal recourse?
No. HUD loans are non-recourse for the Borrower.
Are interest rates high?
Call us today to discuss current rates!
What is the loan term and amortization?
HUD loans will have up to 35 or 40 years of term and Amortization depending on the transaction.
Is there a minimum loan amount?
Yes. Cambridge processes loans for properties whose loan request exceeds $1.5 million for HUD transactions, and exceeds $5 million for bridge loans.
Is there a specific level of occupancy required for a facility?
Yes. HUD loans require occupancy of approximately 80% for the facility’s market. Conventional and bridge loan occupancy requirements vary by lender and investor.
What is the expected closing time for these loans?
Bridge loans will close within 2-3 months. HUD loans usually close within 60-90 days from the date of application for refinance or acquisition, depending on the transaction type; however, in some cases it may take up to a year to close the loan.
Does Cambridge require the borrower to be experienced?
Yes, we want the Borrower to have experience in the Senior Housing and Healthcare industry.
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.
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.
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.
Does Cambridge have any geographical preferences?
No. Cambridge has national scope and affiliates throughout the country.
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 in the Resource Center or upon request.
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.