Rehabilitation in Relation to FHA 232 Loans
Rehabilitation is defined as the tools, materials, labor, and other costs associated with improving buildings, excluding routine and/or minor repairs. HUD 232 loans can be used for substantial rehabilitation of properties intended for senior citizens, including skilled nursing and assisted living facilities. However, to qualify for a HUD 232 loan for substantial rehabilitation, the rehabilitation must involve replacing two major building systems, and the costs must equal or exceed 15% of the estimated fair market value of the property, or $6,500 per unit.
To learn more about FHA 232 loans, fill out the form below to speak to a HUD/FHA loan expert.
Get A Free HUD/FHA Multifamily Loan Quote!