Tap to get financing
Apartment Loans
Fannie Mae
Fannie MaeMultifamily Small Loan ProgramFannie Mae DUS Loans
Freddie Mac
Freddie MacSmall Balance LoansAffordable Housing Express Loans
FHA/HUD
HUD LEAN Loan ProcessingHUD 232/223(a)(7) Refinancing LoansHUD 232/223(f) LoansHUD 241(a) Supplemental LoansHUD 232 LoansHUD 223(a)(7) Refinancing LoanHUD 223(f) LoansHUD 221(d)(4) LoansHUD Apartment Loans
Non-agency
Life Company Apartment LoansHard Money Apartment LoansApartment Bridge LoansMezzanine FinancingSmall Apartment LoansBank LoansConstruction LoansCMBS Loans
Learn
BlogYield Maintenance CalculatorLoan Repayment CalculatorNOI CalculatorGross Rent Multiplier CalculatorDebt Service Coverage Ratio (DSCR) CalculatorDebt Yield CalculatorCash on Cash Return CalculatorCap Rate CalculatorBreak Even Ratio CalculatorApartment Mortgage CalculatorLoan To Value and Loan To Cost RatiosApartment Finance Due Diligence ResourcesHow to Purchase an Apartment Property
About us
TeamLeadership
Get financing
Newly Published
Nov 1 at Apartment Loans
What is Conduit Financing?
Sep 9 at Apartment Loans
Operating Expense Ratio Explained
Jul 1 at Apartment Loans
Real Estate Mutual Funds
Explore the Janover Network
Mar 27 at Multifamily Loans
Multifamily Minute Reader Reflections: Interest Rate Outlooks
Mar 24 at Multifamily Loans
The Best 3 Multifamily Loans for Affordable Housing in 2023
Mar 20 at Multifamily Loans
Multifamily Minute Reader Reflections: How Will Bank Failures Impact Multifamily?
Was This Article Helpful?
Last updated on Aug 23, 2022
3 min read

HUD 232/223(f) Loans

The HUD 232/223(f) loan is designed for financing senior housing, assisted living, or skilled nursing facilities.

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. Loans for Acquiring or Refinancing Senior Living and Healthcare Facilities Insured by HUD
  2. 2021 Sample Terms For HUD 232/223(f) Loans
  3. Get Financing

Loans for Acquiring or Refinancing Senior Living and Healthcare Facilities Insured by HUD

The HUD 232 loan is a fantastic way to build or rehabilitate senior living and healthcare properties. However, if you want to acquire such a property as-is, or even refinance a property you currently own with HUD financing, then a HUD 232/223(f) loan would be the best financing vehicle instead. While HUD 232/223(f) loans are specifically tailored for as-is acquisitions and refinancing borrower-owned properties, they are similar to HUD 232 loans in that HUD 232/223(f) loans use HUD LEAN processing and are intended for healthcare properties with 20 or more residents. Plus, these loans are fully assumable (with FHA approval), and are non-recourse.

2021 Sample Terms For HUD 232/223(f) Loans

Size: Minimum loan of $2 million (typical loan averages $7.6 million)

LTV/Leverage:

  • Purchase:
  • Non-profits: The lesser of 90% of the acquisition price or appraised value
  • For-profits: The lesser of 85% of the acquisition price or appraised value
  • Refinance:
  • For-profits: The lesser of 85% of the appraised value or 100% of the cost to refinance
  • Non-profits: The lesser of 90% of appraised value or 100% of the cost to refinance

Term: 35 years, fixed-rate

Amortization: Up to 35 years, fully amortizing

Minimum DSCR: 1.45x

MIP: HUD 232/223(f) MIPs include an MIP fee of 1% of the loan amount, paid at closing, and an annual MIP of 0.65%

Third-Party Reports:

HUD 232/223(f) loans require multiple third-party reports, including:

  • HUD/FHA Approved Full Property Appraisal
  • Borrower/Stakeholder Credit Reports
  • Phase I Environmental Assessment
  • Architectural/Engineering Report
  • Market Study

HUD 232/223(f) Eligible Properties:

In order to be eligible for HUD 232/223(f) financing, a project must:

  • House 20 or more residents
  • Provide ongoing medical care for long-term patients
  • Be licensed by the appropriate municipal or state organization/agency
  • Have been constructed at least three years ago, though newer property additions are allowed, as long as they are smaller than the original structure
  • Have no more than 20% of the project's gross area or gross income devoted to/derived from non-resident daycare
  • Have no more than 25% of all units designated as independent living units
  • Have no more than 20% of the gross floor space filled and no more than 20% of the property's income derived from commercial tenants

Advantages:

  • Low, fixed interest rates
  • Loans are fully assumable (with FHA/HUD approval)
  • HUD 232/223(f) loans are non-recourse, limiting risks for developers

Disadvantages:

  • Borrowers/owners must regularly contribute to a replacement reserve fund
  • FHA application fees of 0.30% of the entire loan amount and FHA inspection fees of 0.50% of the entire loan amount are required
  • Requires both an initial, one-time MIP (mortgage insurance premium) at closing, as well as monthly MIPs throughout the life of the loan
In this article:
  1. Loans for Acquiring or Refinancing Senior Living and Healthcare Facilities Insured by HUD
  2. 2021 Sample Terms For HUD 232/223(f) Loans
  3. 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.

Get financing →
Janover logo

Apartment 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.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@apartment.loans

Loan Types

Bank Loans
CMBS
Construction Loans
Fannie Mae
Freddie Mac
HUD/FHA Apartment Loans

Site Information

Privacy Policy
Terms of Use

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We have no affiliation with any government agency and are not a lender. We are a technology company that uses software and experience to bring lenders and borrowers together. By using this website, you agree to our use of cookies, our Terms of Use and our Privacy Policy. We use cookies to provide you with a great experience and to help our website run effectively.

Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. We are not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae.

Copyright © 2023 Janover Inc. All rights reserved.