Tap to get financing
HUD Loans
HUD Loans
Loan Programs
FHA & HUD LoansHUD 221(d)(4)HUD 223(f)HUD 223(a)(7)HUD 241(a)HUD 232/223(f)
Calculators
Break-Even Ratio CalculatorCap Rate CalculatorCash-on-Cash Return CalculatorCommercial Mortgage CalculatorDebt Yield CalculatorDSCR CalculatorLoan Repayment CalculatorLTV CalculatorNOI Calculator
Resources
BlogLoan DocsHUD REAC InspectionsHUD Section 202 Supportive HousingHAP Contracts2021-2022 HUD Multifamily Basic Statutory LimitsFrequently Asked Questions
About
CompanyLeadershipTeamWe're Hiring
Contact Us
Get financing
Newly Published
Oct 5 at HUD Loans
HUD’s New Surplus Cash Distribution Changes
Oct 3 at HUD Loans
What Are Replacement Reserves?
Sep 12 at HUD Loans
Is HUD Financing Available for Assisted Living Facilities?
Explore the Janover Network
Mar 20 at Multifamily Loans
Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
Mar 17 at Commercial Real Estate Loans
Top 10 Commercial Real Estate Lenders of 2023
Mar 15 at Commercial Real Estate Loans
Top 4 Refinancing Loans for Industrial Real Estate in 2023
Was This Article Helpful?
HUD Multifamily Loans Blog
Last updated on Mar 16, 2023
2 min read
by Matthew Sloley

Is HUD Financing Available for Assisted Living Facilities?

HUD 232 and 232/223(f) loans offer some of the highest-leverage, non-recourse financing options available for assisted living facilities.

Better Financing Starts with More Options Start Your Application and Unlock the Power of Choice. Click Here to Get Quotes →$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes
In this article:
  1. HUD 232 Loans for the Construction of Assisted Living Facilities
  2. Loan Program Highlights
  3. HUD 232/223(f) Loans for Refinancing or Acquiring Assisted Living Facilities
  4. Loan Program Highlights
  5. How Do I Get a HUD Loan for an Assisted Living Facility?
  6. Related Questions
  7. Get Financing

With around 30,000 assisted living communities in the U.S catering to north of 800,000 Americans, there is plenty of reason for investors to pay attention to the assisted living facility sector. Advancements in healthcare and growing life expectancy have led to rising demand for assisted living communities.

While there are many options for financing an assisted living community, the U.S. Department of Housing and Urban Development backs loans with some of the most competitive terms out there. That's true whether you're buying, developing, or refinancing a facility.

Two of HUD's loan programs are frequently tapped for these types of investments: the HUD 232 and 232/223(f) programs. This article walks through both.

HUD 232 Loans for the Construction of Assisted Living Facilities

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 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.

Loan Program Highlights

  • Up to 90% leverage for profit-motivated sponsors (95% for nonprofit)

  • 1.11x DSCR for for-profit sponsors (1.05x for nonprofit)

  • Up to 35 years of fixed interest with full amortization

  • Assumable subject to HUD approval

  • Competitive pricing

HUD 232/223(f) Loans for Refinancing or Acquiring Assisted Living Facilities

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. 

Loan Program 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 interest and fully amortizing

  • Assumable (subject to HUD approval)

  • Competitive pricing

How Do I Get a HUD Loan for an Assisted Living Facility?

This is the easy part. Just drop your details in the form below, and we'll be in touch with free quotes on getting your next assisted living facility investment financed.

Related Questions

What are the requirements for HUD financing for assisted living facilities?

HUD financing for the refinance or acquisition of assisted living facilities requires up to 80% leverage for profit motivated sponsors (85% for non-profit) and a 1.45x minimum debt service coverage ratio. The loan is up to 35 years fixed and fully amortizing, assumable subject to HUD approval, and has competitive pricing. Source

HUD financing for the construction of assisted living facilities requires up to 90% leverage for profit-motivated sponsors (95% for non-profit) and a 1.11x DSCR for for-profit sponsors (1.05x for non-profit). The loan is up to 40 years fixed and fully amortizing, assumable subject to HUD approval, and has competitive pricing. Source

What are the benefits of HUD financing for assisted living facilities?

HUD financing for assisted living facilities offers a variety of benefits, including 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, and competitive pricing. Source

What types of HUD financing are available for assisted living facilities?

Yes, HUD financing is available for assisted living facilities. HUD offers the 232/223(f) loan program, which provides up to 80% leverage for profit motivated sponsors (85% for non-profit) and up to 35 years fixed and fully amortizing. The loan is assumable subject to HUD approval and offers competitive pricing. For more information, please visit this page.

How do I apply for HUD financing for assisted living facilities?

Yes, HUD financing is available for assisted living facilities. To apply for HUD financing, you can fill out the form on this page. HUD financing for assisted living facilities is provided through the HUD 232/223(f) program. Highlights of this program include:

  • 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

What are the eligibility criteria for HUD financing for assisted living facilities?

HUD financing for assisted living facilities is available for both construction and refinance/acquisition. The eligibility criteria for HUD financing for assisted living facilities depends on the type of loan. For construction loans, the leverage is up to 90% for profit-motivated sponsors (95% for non-profit) and the debt service coverage ratio (DSCR) is 1.11x for for-profit sponsors (1.05x for non-profit). For refinance/acquisition loans, the leverage is up to 80% for profit motivated sponsors (85% for non-profit) and the minimum debt service coverage ratio is 1.45x. Both loan types have up to 40 years fixed and fully amortizing terms and are assumable subject to HUD approval. For more information, please visit www.hud.loans/hud-loans-blog/is-hud-financing-available-for-assisted-living-facilities.

What are the advantages of HUD financing for assisted living facilities compared to other financing options?

HUD financing for assisted living facilities offers several advantages compared to other financing options. These include 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, and competitive pricing. Source

In this article:
  1. HUD 232 Loans for the Construction of Assisted Living Facilities
  2. Loan Program Highlights
  3. HUD 232/223(f) Loans for Refinancing or Acquiring Assisted Living Facilities
  4. Loan Program Highlights
  5. How Do I Get a HUD Loan for an Assisted Living Facility?
  6. Related questions
  7. Get Financing

Getting commercial property financing should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

HUD Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@hud.loans

HUD 221(d)4
HUD 223(f)
DSCR Calculator
Multifamily HUD Loans
Commercial Mortgage Calculator

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2022 Janover Inc. All rights reserved.