HUD HUD 232 and 232/223(f) Terms and Interest Rates

Below are the terms and interest rates for FHA 232 senior housing financing.

Maximum Loan Amount

There is no maximum dollar amount for HUD 232 loans. However, the mortgage amount is limited by loan guidelines.

Mortgage Terms

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DSCR: 1.45x minimum 

Leverage: 

  • New Construction:

    • Skilled Nursing Facility or Independent Living Unit: 80% LTV (for profit), 85% LTV (non-profit)

    • Assisted Living Facility: 75% LTV (for profit), 80% (non-profit)

    • Or, 90% of HUD eligible replacement costs (whichever is less)

  • Purchase:

    • Skilled Nursing Facility or Independent Living Unit: 80% LTV (for profit), 85% LTV (non-profit)

    • Assisted Living Facility: 80% (for profit), 85% (non profit)

  • Substantial Rehabilitation:

    • Skilled Nursing Facility or Independent Living Unit: 80% LTV (for profit), 85% LTV (non-profit)

    • Assisted Living Facility: 80% (for profit), 85% (non profit)

    • Or, 90% of HUD eligible replacement costs (whichever is less)

    • For borrower owned properties, 100% of the existing mortgage debt or 90% of the “as is” market value of the property before rehabilitation (95% for non-profits)

    • For properties that will be bought and substantially rehabilitated, 85% of the purchase price of the property or 90% of the current market value of the property before rehabilitation (95% for non profits)

Interest Rates

The HUD 232 program offers fixed interest rates. Actual rates depend on prevailing market conditions. For new construction or substantial rehabilitation, the interest rate is fixed prior to closing the initial construction loan and is interest only during construction.