How do HUD 232 loans work?
Direct answer
HUD 232 loans are FHA-insured mortgages for residential care facilities, including assisted living, memory care and skilled nursing. They offer non-recourse, long-term fixed-rate financing with terms up to 35 years, but they take 6 months or more to close, so they're often used to refinance stabilized communities.
What to know
HUD 232/223(f) loans finance the purchase or refinance of existing facilities.
HUD 223(a)(7) refinances existing HUD-insured loans.
Because closing takes time, many buyers use bank or SBA financing first and refinance into HUD later.
How Haven helps
Haven connects owners with HUD lenders; Haven is not a lender. Read about the HUD 232 program.
Related questions
- How much down payment do I need to buy an assisted living facility?
- How can I finance the purchase of an existing assisted living facility?
- Can you get an SBA loan to buy an assisted living facility?
- What do lenders require to refinance an assisted living facility?
- What are my options if refinancing cannot close before my loan matures?