California Health Facilities Financing Authority

Healthcare Expansion Loan Program II (HELP II)
Frequently Asked Questions (FAQ)

FAQ Index

 

Security Provisions

Is a credit rating or a letter of credit required?

No.

Back to Top

Is a gross revenue pledge required to secure a CHFFA loan?

A gross revenue pledge is required.  CHFFA will file a UCC-1 Financing Statement for public record with the Secretary of State to secure the gross revenue pledge.

Back to Top

What type of security is required?

Equipment loans will require a gross revenue pledge as well as a lien on the financed equipment.  Real property loans will require a gross revenue pledge as well as a first lien on the real property used to secure the loan. CHFFA may impose other security requirements depending on the facts and circumstances of the transaction.

Back to Top

Does CHFFA have a maximum loan to value ratio?

A maximum loan-to-value ratio of 95% is required for real estate and equipment loans. CHFFA may impose a lower loan-to-value ratio depending on the facts and circumstances of the transaction.

Back to Top

What types of appraisals will CHFFA accept?

CHFFA accepts commercial and residential appraisals.

Back to Top

When does CHFFA require completion of an appraisal?

An appraisal is required before closing and may be completed up to six months prior to the closing date of the loan.  

Back to Top

Will CHFFA take a second lien position?

Generally, CHFFA requires the first lien position. Under certain circumstances CHFFA may take another lien position.  Please contact CHFFA staff at (916) 653-2799 to discuss further.

Back to Top

Is a Preliminary Title Report required for real property?

Yes, a Preliminary Title Report is required with the loan application to ensure the real property has clear title.

Back to Top