HUD 232 Basic Information 

The basic terms of the HUD 232 loan include: 

Loan Purpose: Construction, acquisition, rehabilitation of properties intended for senior citizens

Loan Size: $2 million minimum (average loan size is $7.6 million)

Loan Term:

10-year minimum, fully amortizing

Up to 40-year fixed-rate term for new and rehabilitated properties

Up to 35-year fixed-rate terms for non-rehab acquisitions that can be funded with Government National Mortgage Association (GNMA) mortgage-backed securities

Skilled Nursing Facilities/Independent Living Units: 80% LTV (for profit), 85% LTV (nonprofit) 

Assisted Living Facilities: 

New Construction: 75% LTV (for profit), 80% (nonprofit) 

Purchase: 80% LTV (for profit), 85% LTV (nonprofit) 

Substantial Rehabilitation: 80% LTV (for profit), 85% LTV (nonprofit) 

Or, 90% of HUD-eligible replacement costs (whichever is less)

For borrower-owned properties, 100% of the existing mortgage debt or 90% of the “as is” market value of the property before rehabilitation (95% for nonprofits)

For properties that will be bought and substantially rehabilitated, 85% of the purchase price of the property or 90% of the current market value of the property before rehabilitation (95% for nonprofits)

This also applies to skilled nursing facilities/independent living units 

DSCR: 1.45x minimum DSCR, 1.11x minimum DSCR for HUD 232(i) fire safety loans

HUD 232/223(f) Basic Information

Projects that don't qualify for substantial rehabilitation or purchase under the HUD 232 loan program may qualify for the HUD 232/223(f) program. This financing is available for borrowers who want to either purchase or refinance a senior living asset. The terms of this loan product include:

Loan Purpose: Purchase or refinancing of properties intended for senior citizens

Loan Size: $2 million minimum (average loan size is $7.6 million)

Loan Term: Minimum 10 years, maximum 35 years (or 75% of the remaining economic life of the property, whichever is less)

Leverage:

Purchase:

Lesser of 85% of the acquisition price or appraised value (for-profits)

Lesser of 90% of the acquisition price or appraised value (nonprofits)

Refinance::

Lesser of 100% of the cost to refinance or 85% of appraised value (for-profits)

Lesser of 100% of the cost to refinance or 90% of appraised value (nonprofits)

DSCR: 1.45x minimum DSCR

Tools for Brokers, Investors, and Developers 

If you're interested in HUD 232 or HUD 232/223(f) financing for a senior living development, we have the tools to help. Our information sections cover subjects including: 

Frequently Asked Questions

Appraisal Requirements

Types of HUD 232 Loans (including refinancing and supplemental financing)

Terms, Qualifications, and Guidelines for HUD 232 financing

In addition, we have also provided our easy-to-read HUD 232 and HUD 232/223(f) term sheets.

FOR DEVELOPERS

Find developer-specific information, including: 

State Approval Information

Healthcare Documents

Insurance Requirements

A Construction Application Submission Checklist for HUD 232 construction loans