Are you looking to refinance your nursing facility or intermediate care facility (ICF), build a new assisted living or undertake a combination of projects such as substantial rehabilitation of your nursing facility and build a new assisted living?  There are financing options beyond conventional loans that may be a better fit for your project.

HUD through its Section 232 (also known as the LEAN) program provides mortgage insurance for residential care facilities such as skilled nursing facilities, assisted living, intermediate care facilities and board and care homes.  Some of the advantages of HUD loans include low, fixed rates usually lower than conventional rates, longer loan terms and amortization periods and nonrecourse loans. Non-recourse loans are loans that the lender is only able to seize collateral and not a borrower’s personal property if the borrower defaults on the loan.  Non-recourse loans do not require personal or corporate guarantees. The table below highlights some of the key features of HUD/FHA insured loans compared to conventional loans. For a more detailed summary of the comparison and common terms, click here.