HUD 232 Portfolio Loans
In addition to funding single properties, HUD permits HUD 232 loans to be used for portfolios of multiple senior living properties. In some cases, these portfolios may be quite large. For example, in 2001, HUD approved a 232 loan for a portfolio consisting of 75 senior living properties. However, HUD 232 loans for portfolios are still somewhat uncommon, perhaps because the borrower needs to have especially good credit and very strong financials to qualify.
What are the Benefits of HUD 232 Portfolio Loans?
HUD 232 portfolio loans have a variety of benefits for large-scale owners of senior properties, including:
Less time and money spent on the approval and origination process
HUD 232 refinancing of multiple properties can greatly increase cash flow, potentially giving developers the capital to purchase or construct new assets
HUD fixed-rate financing allows large companies to stabilize expenses and make accurate financial projections well into the future