Senior living
HUD Section 232
HUD Section 232 is an FHA mortgage insurance program that lets a HUD MAP lender make long-term, fixed-rate, non-recourse loans secured by licensed assisted living, board and care, memory care and skilled nursing facilities. It covers refinances and acquisitions of existing buildings and new construction or substantial rehabilitation.
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 |
|---|---|---|
| Refinance or acquisition: term | Up to 35-year fixed, fully amortizing | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| Refinance or acquisition: max LTV (for-profit) | 80% | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| Minimum DSCR | 1.45x | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| New construction: term | Construction period plus up to 40-year | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| New construction: max loan-to-cost (for-profit) | 75% | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| Annual MIP (refinance / new construction) | 0.65% / 0.77% | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| Upfront MIP | 1.00% | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| Annual CPA audit | About $20,000 per year | Corin sizing estimate; as of 2026-10-31 |
How the program works
A HUD MAP lender originates and underwrites the loan, HUD insures it, and the loan is typically pooled into a Ginnie Mae security. Because HUD insures the lender against default, lenders accept higher leverage and longer terms than conventional lenders. The loan is non-recourse to the borrower except for customary carve-outs, and it is assumable with HUD consent.
Corin does not lend or insure. We arrange the loan as a licensed broker: we help size it, choose the right HUD lender, and organize the file so underwriting starts complete.
Which Section 232 loan fits
- 232/223(f): refinance or acquire an existing, stabilized, licensed facility.
- 232 new construction or substantial rehabilitation: build or gut-renovate a facility with HUD financing from the start.
- Bridge-to-HUD: a short-term floating loan that carries a transitional property until it can take out into 232/223(f).
What lenders look at
Existing facilities generally need 3 or more years since construction completion and stabilized operations (around 85% occupancy). Underwriters review operator experience, licensing history, trailing census and payer mix, state survey results, and the structure between property owner and operator.
Fixed costs matter. Third-party reports, legal and title, HUD fees and the annual audit make HUD less efficient on small balances; below roughly $3.5M, an SBA 504 loan is often cheaper all in. HUD processing typically runs 120–180 days from application, and timelines are not guaranteed.
Frequently asked questions
What is the difference between HUD 232 and HUD 232/223(f)?
Section 232 is the insurance program for healthcare facilities. The 232/223(f) loan is its refinance and acquisition product for existing, stabilized buildings. New construction and substantial rehabilitation use the 232 new construction product.
Does HUD 232 cover skilled nursing and assisted living?
Yes. Section 232 covers licensed skilled nursing facilities, assisted living facilities, board and care homes (including California RCFEs) and memory care, subject to state licensing, operator and size requirements.
Is a HUD 232 loan recourse?
It is non-recourse to the borrower except for customary carve-outs such as fraud or misapplication of funds. HUD also requires operator and principal certifications.
How long does a HUD 232 loan take?
Timelines are typical ranges after a complete file and are subject to lender approval, appraisal, title, and diligence. They are not guaranteed. HUD LEAN processing typically runs 120–180 days from application.
Related programs
- HUD 232/223(f) refinanceRefinance or acquire an existing, stabilized senior housing facility with HUD-insured fixed-rate debt.
- Bridge-to-HUDShort-term floating debt to stabilize a facility before a HUD 232/223(f) takeout.
- SBA 504 hotel loansBank first lien plus a 25-year fixed CDC debenture for owner-operated hotels.
- Skilled nursingHUD 232, bridge and bank options for skilled nursing facilities.
- 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.