Loan Programs for Seniors Housing and Assisted Living Facilities
What loans are available for assisted living and seniors housing facility purchases, refinances, construction, or bridge in 2024?
SBA 504 & SBA 7a for Seniors Housing and Assisted Living Facilities and Businesses Purchases
Ideal for Assisted Living Facility acquisition and refinancing:
- Loans up to 85% of the purchase price
- Amortize over 25 years
- Typically capped at $10 million
HUD FHA Section 232 – Commercial Loans for the Acquisition of Multi-Family, Seniors Housing and Assisted Living Properties
For the acquisition, refinancing, or substantial rehabilitation of seniors housing and assisted living facilities:
- Up to 80% leverage
- Up to 35 years fixed and fully amortizing
- Non-recourse and assumable
Assisted Living Construction Loan
- 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
- Extremely competitive pricing
HUD 223 Refinance Calculator
for Multi-Family, Senior Housing, Assisted Living, and Healthcare Properties
HUD Section 202 Supportive Housing for the Elderly Program
Provides capital advances for very low-income elderly persons, including frail elderly:
- Financing for construction, rehabilitation, or acquisition
- Includes rent subsidies to make projects affordable
Financing for Assisted Living and Senior Care facilities in rural and semi-rural areas:
- Must be located within USDA’s rural jurisdiction
Fannie Mae Seniors Housing and Assisted Living Facility Loan Program Overview
Provides mortgages for existing, stabilized Seniors Housing properties:
- Loan sizes above $2 million
- Up to 75% LTV
- Fixed-rate terms up to 30 years
- Non-recourse and assumable
Freddie Mac Seniors Housing, Assisted Living & Multifamily Small Balance Loan Program
For small senior housing loans ($1M-$7.5M):
- Competitive interest rates
- Interest-only payment options available
- Up to 30-year amortization
Independent Living Construction Loan
If you’re considering getting an FHA multifamily construction loan to build an age-restricted or senior community, it’s important to understand what this type of loan does and does not allow. According to HUD, a senior community is any community for individuals 62 years and older.
The main limitation of HUD 221(d)(4) loans for senior living projects is that they must not be assisted living. This means that communal dining facilities are not allowed. So, for instance, this loan does not fund traditional nursing homes. Instead, it only funds “independent living facilities,” where seniors live independently in apartments, generally without any supervision from the project itself. A meal service may or may not be offered, or, it may be offered by an independently contracted company. Instead of using the 221(d)(4) loan, some developers decide to use the Section 231 program to help fund senior developments. However, this program has become much less popular in recent years in favor of FHA 221(d)(4) financing.
Specialized Loan Programs
Bridge Loans
Short-term financing options to bridge gaps in funding.
Construction Loans
For new construction projects in seniors housing and assisted living.
Private Equity
Equity financing solutions for large-scale investments.
C-PACE Financing for Senior Housing Properties and New Developments
Financing mechanism for energy efficiency, renewable energy, and water conservation projects.
Contact Us
At Haven Senior Investments, we are committed to helping you navigate the complex landscape of seniors housing and assisted living financing. Contact us today to explore how our comprehensive range of financial solutions can propel your ventures to new heights.
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