Is HUD Financing Available for Assisted Living Facilities?
For investors looking to secure high-leverage, non-recourse HUD financing for the acquisition, refinance, or construction of an assisted living facility, the HUD 232 and 232/223(f) loan programs may be the perfect solution.
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- HUD Financing for the Construction of Assisted Living Facilities
- HUD 232 Loans
- HUD 232 Assisted Living Construction Loan Highlights
- HUD Financing for the Refinance or Acquisition of Assisted Living Facilities
- HUD 232/223(f) Loans
- HUD 232/223(f) Assisted Living Financing Highlights
- Looking to Finance an Assisted Living Facility?
- Get Financing
With over 28,000 assisted living residences in the U.S catering to over 800,000 Americans, there is plenty of reason for investors to pay attention to the assisted living facility market. Advancements in healthcare and growing life expectancy have led to rising demand for assisted living communities.
Fortunately for investors, the U.S. Department of Housing and Urban Development provides insurance for loans to finance the acquisition, refinance, or construction of assisted living facilities.
For those looking to secure high-leverage, non-recourse financing for the acquisition, refinance, or construction of an assisted living facility, the HUD 232 and 232/223(f) loan programs may be worth considering.
HUD Financing for the Construction of Assisted Living Facilities
HUD 232 Loans
Section 232 of HUD's mortgage insurance programs provides insurance for mortgages for the construction or substantial rehabilitation of senior housing communities — including assisted living facilities, skilled nursing, and memory care. Section 232 loans generally have fixed-rate terms of up to 35 years and are fully amortizing. Loans start at $2 million and are available for facilities with as few as 20 residents.
HUD 232 Assisted Living Construction Loan Highlights
Up to 90% leverage for profit-motivated sponsors (95% for non-profit)
1.11x DSCR for for-profit sponsors (1.05x for non-profit)
Up to 40 years fixed and fully amortizing
Assumable subject to HUD approval
Competitive pricing
HUD Financing for the Refinance or Acquisition of Assisted Living Facilities
HUD 232/223(f) Loans
HUD Section 232/223(f) provides mortgage insurance for the refinance or acquisition of assisted living facilities and other senior housing and healthcare properties such as skilled nursing facilities. These long-term, fixed-rate loans start at $2,000,000 with leverage available up to 80% of the property value.
HUD 232/223(f) Assisted Living Financing Highlights
Up to 80% leverage for profit motivated sponsors (85% for non-profit)
1.45x minimum debt service coverage ratio
Up to 35 years fixed and fully amortizing
Assumable subject to HUD approval
Competitive pricing
Looking to Finance an Assisted Living Facility?
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- HUD Financing for the Construction of Assisted Living Facilities
- HUD 232 Loans
- HUD 232 Assisted Living Construction Loan Highlights
- HUD Financing for the Refinance or Acquisition of Assisted Living Facilities
- HUD 232/223(f) Loans
- HUD 232/223(f) Assisted Living Financing Highlights
- Looking to Finance an Assisted Living Facility?
- Get Financing