In January 2010 Sims Mortgage Funding, Inc. (SMF) closed a $17,016,100 FHA-insured loan for the Delaire Nursing and Rehabilitation Center, a 280 bed healthcare and assisted living facility in Linden, NJ. Proceeds from the new loan were used to prepay the project’s existing FHA-insured loan, which SMF originated in 2002 in connection with the borrower’s acquisition of the facility. The refinance loan was insured under the Section 223(a)(7) program and was funded with taxable GNMA mortgage backed securities at an interest rate of 4.48% and a 35-year maturity. The application for mortgage insurance was processed under the Lean program; from submission to HUD approval to closing took 122 days.

Delaire Nursing and Convalescent Center

The refinancing was a clear winner for Delaire, as the project now enjoys $330,000 in annual debt service savings, in addition to $21,000 more in savings through lower deposits to the reserve for replacement fund. The Delaire loan was the third FHA-insured financing SMF has successfully closed for this client dating back to 2002. For additional information about this transaction, contact Chad Himel at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or 845-620-0200.