Healthcare Expansion Loan Program II (HELP II)
Frequently Asked Questions (FAQ)
- Is a credit rating or a letter of credit required?
- Is a gross revenue pledge required to secure a CHFFA loan?
- What type of security is required?
- Does CHFFA have a maximum loan to value ratio?
- What types of appraisals will CHFFA accept?
- When does CHFFA require completion of an appraisal?
- Will CHFFA take a second lien position?
- Is a Preliminary Title Report required for real property?
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.
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.
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.
CHFFA accepts commercial and residential appraisals.
An appraisal is required before closing and may be completed up to six months prior to the closing date of the loan.
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.
Yes, a Preliminary Title Report is required with the loan application to ensure the real property has clear title.