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HUD 232/223(f) Loans

Purchase and Refinance Loans for Senior Living Properties  

The HUD 232 loan program is an effective way for developers to build or substantially rehabilitate a senior housing, assisted living, or skilled nursing project. However, the traditional HUD 232 loan cannot finance as-is purchases or refinances of properties. That's where HUD 232/223(f) loans can be utilized. Like HUD 232 loans, HUD 232/223(f) loans use HUD 232 LEAN processing, reducing approval times, and are intended for financing facilities with 20+ patients. And, like all HUD multifamily loans, these loans are non-recourse, offer generous leverage allowances, and are assumable with FHA approval. 

At Commercial Real Estate Loans., we're committed to helping developers and investors fulfill America's need for safe, high-qualify senior housing. With the demand for senior housing in the U.S. constantly expanding, the industry has a lot of room for growth, and HUD multifamily loans, like the HUD 232 and HUD 232/223(f) loans, are some of most affordable ways to support that growth.

Keep reading below to learn more, or simply click here to download our easy-to-read HUD 232/223(f) loan term sheet.

HUD 232/223(f) Loan Terms 

HUD 232/223(f) loans have terms including: 

  • Loan Purpose: As-is purchase or refinancing of healthcare properties, including senior living, assisted living, or skilled nursing facilities

  • Loan Size: $2 million+

  • Loan Term: 35 years, fixed-rate

  • Leverage:

    • Purchase:

      • For profits: 85% of the acquisition price or appraised value, whichever is less

      • Non-profits: 90% of the acquisition price or appraised value, whichever is less

    • Refinance:

      • For profits: 85% of the appraised value or 100% of the cost to refinance, whichever is less

      • Non-profits: 90% of appraised value or 100% of the cost to refinance, whichever is less

  • DSCR: 1.45x minimum DSCR



  • HUD 232/223(f) loans have fixed interest rates

  • Loans are fully assumable with FHA approval

  • HUD 232/223(f) loans are non-recourse, which restricts liability for developers/investors

  • Lenient leverage requirements




  • Mortgage insurance premiums (MIPs) are still required

  • These loans require an FHA application fee of 0.30% of the entire loan amount

  • These loans also require an FHA inspection fee of 0.50% of the loan amount (which can be funded with the loan itself)

  • Like other HUD multifamily loans, the HUD 232/223(f) loan requires developers to make regular payments into a replacement reserve fund

What Properties are Eligible for HUD 232/223(f) Loans? 

In order to qualify for HUD 232/223(f) financing, healthcare properties must meet certain requirements, including: 

  • All facilities must be licensed by the proper city or state government agency

  • Project construction must be finished at least 3 years before purchase (for acquisitions)

  • If an addition has been built in the last 3 years, it must be smaller than the original building

  • Projects must be able to assist at least 20 patients in need of continuous/skilled medical care

  • Day care for non-residents must account for less than 20% of the property’s gross area and less than 20% of its gross income

  • Commercial space must be equal to or less than 20% of the project's gross area, and contribute less than 20% of its gross income

  • No more than 25% of the project can consist of independent living units

Commercial Real Estate Loans. is the partner you need to help acquire or refinance your next healthcare facility. Whether you're a new company or a long-established enterprise, we have the knowledge and experience to give you more financing options.