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Last updated on Feb 1, 2023
3 min read

HUD 232 Lean Loans

HUD 232 Lean Loans HUD-Insured LEAN Loans for Senior Housing, Assisted Living, and Skilled Nursing Projects

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. How HUD 232 and HUD 232/223(f) Loans are Processed 
  2. HUD 232 LEAN Loan Processing
  3. HUD 232 LEAN Requirements in 2023
  4. Get Financing

How HUD 232 and HUD 232/223(f) Loans are Processed 

HUD 232 and HUD 232/223(f) loans are some of the best options in the industry for financing the construction, acquisition, refinancing, and substantial rehabilitation of healthcare properties, including senior living, assisted living, and skilled nursing facilities. These loans used to be processed using TAP (traditional application processing), or MAP (multifamily accelerated processing). However, beginning in 2008, HUD began transitioning to using LEAN processing, a newer, more streamlined form of loan processing. With LEAN processing, some HUD 232 loans can take as little as 4 months to close. 

At Commercial Real Estate Loans, we know how important it is that developers create safe, healthy, and cost-effective housing for America's growing population of senior citizens. That's why we're committed to supporting investors and developers through each stage of the LEAN process for HUD 232 and HUD 232/223(f) loans. In short, we’re here to answer questions, develop solutions, and help you in any way we can. 

HUD 232 LEAN Loan Processing

HUD 232 LEAN processing has instituted a variety of changes to the HUD loan process, including: 

  • Standardized forms, including lender templates, third-party work forms, and certifications

  • Less duplicate forms required (i.e. closing documents do not have to be submitted twice)

  • Propriety earnings carve-outs are not required

  • Borrowers do not submit LEAN applications directly; instead, lenders submit these applications directly to the OCRF (HUD's Office of Residential Care Facilities)

HUD 232 LEAN Requirements in 2023

HUD 232 LEAN processing also has a variety of specific application requirements, including: 

  • Physical Property Exam: HUD requires that a third-party expert examine the property, determining the specific amount of replacement reserves that it will require. If significant work on the property is required, it may require a HUD 232 loan for substantial rehabilitation.

  • Credit/Financial Check/Experience: HUD will examine a developer's credit history, financial health, and will look into any experience they have-- including any other facilities they own/operate (or have owned/operated).

  • Formal Incident Reports: A formal, software-based incident reporting system is required for all properties using HUD 232 loans.

  • Special Portfolio Reviews: If a borrower has three or more properties with the same ownership, HUD may order an additional review and may also require a master lease.

Commercial Real Estate Loans is the partner you need to help acquire, build, refinance, or repair your next multifamily or commercial real estate project. Whether you're a small startup or an established company, we have the knowledge and experience to give you more financing options.

Get a free quote by filling out the form below.

In this article:
  1. How HUD 232 and HUD 232/223(f) Loans are Processed 
  2. HUD 232 LEAN Loan Processing
  3. HUD 232 LEAN Requirements in 2023
  4. 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.

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Commercial Real Estate 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.

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