Senior housing is a general term denoting housing suitable for older adults. This type of housing emphasizes safety and accessibility. Options range from round-the-clock care facilities to independent living communities. HUD 232 loans can finance many types of senior housing facilities, but facilities must typically have a large healthcare component to qualify.

Skilled nursing facilities are state-licensed, long-term care facilities that offer round-the-clock care for residents dependent on nursing care.

Replacement reserves are funds that are earmarked for replacing building components and equipment which will wear out over time.