Senior living
Bridge-to-HUD
A bridge-to-HUD loan is a short-term, floating-rate, interest-only loan from a private lender or debt fund that finances the acquisition or stabilization of a senior living property that does not yet meet HUD's seasoning or occupancy tests, sized so the property can take out into a HUD 232/223(f) loan.
Key facts
Figures as of 2026-10-31. Program rules change by notice, so an advisor confirms current terms with lenders before you rely on any figure.
| Item | Figure | Source and date |
|---|---|---|
| Max LTV | 75% | Corin sizing estimate; as of 2026-10-31 |
| Minimum debt yield | 8% | Corin sizing estimate; as of 2026-10-31 |
| Typical term | 36 months | Corin sizing estimate; as of 2026-10-31 |
| Indicative spread | SOFR + 4.25 points | Corin sizing estimate; as of 2026-10-31 |
| Lender fee / exit fee | 1.0% / 0.5% | Corin sizing estimate; as of 2026-10-31 |
| Takeout test | 85% occupancy, 3+ years since completion, 1.45x DSCR | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
The bridge-to-HUD plan
The structure only works if the exit is credible on day one. We size the bridge against the takeout: the stabilized net operating income has to support a HUD loan large enough to repay the bridge, with margin for HUD costs and the mortgage insurance premium.
- Acquire a facility below stabilized occupancy and lease it up
- Complete a renovation or change of operator before applying to HUD
- Bridge a gap while an operator or licensing transition seasons
Risks to price in
Floating-rate interest, extension fees if lease-up runs long, and the possibility that HUD's tests or timing move before takeout are the main risks. A bridge lender funds as lender of record and underwrites its own credit decision; Corin does not fund bridge loans or hold any borrower money.
Frequently asked questions
Why bridge instead of going straight to HUD?
HUD 232/223(f) expects a completed, stabilized property. If census is still ramping or ownership just changed, a bridge covers the gap until the file meets HUD's tests.
How fast can a bridge loan close?
Private bridge loans often close faster than agency or HUD loans: many close in 10–21 days after a complete file, subject to lender approval, appraisal, title and diligence. This is not guaranteed.
What happens if I cannot take out into HUD?
The usual fallbacks are an extension, a bank or SBA 504 refinance, or a sale. Plan the fallback before closing the bridge.
Related programs
- HUD 232/223(f) refinanceRefinance or acquire an existing, stabilized senior housing facility with HUD-insured fixed-rate debt.
- HUD Section 232FHA-insured, long-term, non-recourse debt for licensed healthcare real estate.
- Private bridge loansShort-term floating debt from private lenders and debt funds.
- Hotel to senior living conversionAcquisition and conversion bridge for turning a hotel into licensed senior living.
- Senior living financingHUD, SBA, bridge and bank options for senior living owners.
Talk through your deal with an advisor
Send the basics and a licensed Corin advisor reviews which programs and lenders may fit, or size the loan yourself first.