Illustrative structure · Bridge-to-HUD 232/223(f)
$16.8M 96-bed memory care
A 96-bed memory care community has not yet reached the occupancy or operating history HUD requires. The owner needs capital now and wants a path to long-term HUD debt later.
Illustrative example. Structures shown are illustrative examples of how these programs are typically arranged. They are not client testimonials or guarantees of results; actual terms vary by borrower, asset, and market. This is not a closed transaction and not an offer or commitment to lend.
Why this structure
- A floating-rate, interest-only bridge buys time to fill beds and build trailing income that a HUD underwriter can rely on.
- The bridge is sized with the takeout in mind: a lender checks that stabilized income could support HUD Section 232 debt (modeled at 80% LTV and 1.45x DSCR).
- If the exit works, Section 232 loans run up to 35 years fully amortizing and are non-recourse to the owner, subject to HUD's carve-outs.
Program parameters used
- Bridge max LTV
- 75%Modeled assumption, reviewed 2026-10-31.
- Bridge term
- 36 monthsInterest-only.
- Bridge spread
- SOFR + 4.25%Indicative; set by the lender.
- Bridge min debt yield
- 8%
- HUD 232 refinance max LTV
- 80%Modeled on the current HUD handbook, reviewed 2026-10-31; confirm with a HUD lender.
- HUD 232 refinance min DSCR
- 1.45xModeled on the current HUD handbook, reviewed 2026-10-31; confirm with a HUD lender.
- HUD 232 term
- 35 yearsModeled on the current HUD handbook, reviewed 2026-10-31; confirm with a HUD lender.
- HUD 232 annual / upfront MIP
- 0.65% / 1%Modeled at the Section 232 rates; a HUD lender confirms whether the flat 0.25% MIP notice applies.
- HUD stabilized occupancy test
- 85%Modeled on the current HUD handbook, reviewed 2026-10-31; confirm with a HUD lender.
- Years since completion for 223(f)
- 3Modeled on the current HUD handbook, reviewed 2026-10-31; confirm with a HUD lender.
Timelines are typical ranges after a complete file and are subject to lender approval, appraisal, title, and diligence. They are not guaranteed.
How it typically unfolds
Step 1
Underwrite the exit first
The advisor sizes the HUD takeout on stabilized census and expense assumptions, then works backward to the bridge.
Step 2
Place the bridge
A bridge lender funds as lender of record on a floating, interest-only loan with extension options.
Step 3
Lease-up and reporting
The operator builds census and trailing financials. The lender tracks them against the plan.
Step 4
Apply for the HUD loan
A HUD-approved lender submits the application when the property meets HUD's occupancy and history tests. HUD decides.
What a lender will look at closely
- Floating-rate exposure and any rate cap the bridge lender requires.
- Whether census reaches HUD's stabilized occupancy test before the bridge matures, and what the extension cost is if it does not.
- HUD's operator, licensing and environmental requirements, which are separate from the bridge's.
- Section 232 premium and loan limits, which change by notice.
Have a similar property?
Other representative structures
- $2.5M 58-bed assisted livingSBA 504 refinance
- $14.5M 110-key flagged hotel + PIPSBA 504 Green $5.5M + Bank 1st
- $9.2M Boutique hotel → assisted livingConversion bridge · California
- $24M 120-unit ground-up apartmentsBank construction loan + C-PACE
- $2.1M 8-unit apartment purchase and rehabPrivate lender · purchase + rehab
All rates, terms, and sizing are indicative estimates for discussion only, are not a commitment to lend, and are subject to lender underwriting, appraisal, credit approval, and program guidelines in effect at application. Corin Commercial arranges loans as a licensed California real estate broker and is not the lender. Corin Commercial, Inc. · Real estate broker, California Department of Real Estate · CA DRE Corp. License #01522444 · Designated Officer: Neeli Khanna