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 Everything You Need to Know About HUD Financing For Senior Healthcare and Housing

​The objective of this webpage is to provide long-term care and post-acute care providers a simple, user friendly introduction to healthcare mortgage loans financed through the Department of Housing and Urban Development (“HUD”), including differences between HUD/FHA insured loans versus conventional financing, the pros and cons, and the process of securing a HUD loan.

Through interactive content including member testimonials, infographics, webinars, and a HUD loan calculator, members are guided through the HUD loan process. Although this page serves as a platform for introductory HUD material, links to in-depth content are also available.

The resources are designed to give providers:

  • An understanding of the fundamentals of HUD loans
  • An introduction to the different types of HUD loans

You will learn:

  • What are HUD loans and their benefits?
  • What is the process and timeline of obtaining a HUD loan? Who are the top lenders? What are other provider's experiences with HUD loans?






 HUD Mortgage Calculator

Use this calculator to help estimate your HUD monthly mortgage payment. Your HUD mortgage amount is impacted by certain variables, such as type of facility (skilled nursing, assisted living, independent living, etc.), borrower status (profit/non-profit), and type of loan (new construction, refinance, substantial rehab, etc.).

The information provided below is to assist you in understanding what your HUD mortgage could look like and is designed for educational and illustrative purposes only. Consult a HUD lender --see recent closings, finding a lender, etc.-- for more specific information regarding interest rates, payments, and terms.

HUD Mortgage/Loan Amount: 80% leverage multiplied by appraised value. Minimum loan amount is $2 million.

Interest Rate: See note below the calculator for the current rate.

Term: Varies by program, please see below. Also click here to go to the page on Section 232 Loan Types. HUD loans are fixed and are fully amortized.

  • New Construction & Substantial Rehabilitation (Section 232): Minimum loan term is 10 years; maximum loan term is 40 years or ¾ of the remaining economic life of the property, whichever is less.
  • Supplemental Loans (Section 232/241(a)): The loan term is limited to the term of the existing insured first mortgage, unless otherwise approved by HUD.
  • Refinance (Section 232/223(f)): Maximum loan term is 35 years or 75% of the remaining economic life of the property, whichever is less. A lower term may be appropriate to mitigate loan risk but may not be less than 10 years.
Start Date: Initial endorsement date of the loan

Note: HUD 232 loans typically require the borrower to contribute funds monthly for replacement reserves (maintenance capitol expenditures).

 ‭(Hidden)‬ HUD Calculator

 Testimonials

The below video clips are testimonials from AHCA members about their experiences with using HUD loans for new construction, remodeling, and refinancing.



 

 Recent Closings


Below you will find a list of recent closings by Capital Funding Group.

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 Upcoming Events

​Investment Solutions Conference 2021

More information coming soon.

 Capitol Hill and HUD Updates



For important information pertaining to housing related legislative updates, please visit the U.S. Senate Committee on Banking, Housing, & Urban Affairs website and the U.S. House Financial Services Committee page

The U.S. Department of Housing and Urban Development (HUD) happenings can be found here.  You can also sign up for the HUD News mailing list to receive updates directly. 

If you have any questions regarding any Hill or Agency activity on housing issues, please don’t hesitate to contact AHCA’s Senior Director of Not for Profit & Constituent Services, Dana Ritchie.

March 10, 2021