Loan Product
Senior Living Facilities: Ground Up, Bridge to HUD, and HUD Permanent.
Senior living is its own asset class. Independent living, assisted living, memory care, and skilled nursing each underwrite differently, and most CRE lenders will not touch them. The network includes the dedicated senior housing and healthcare debt desks at the country's top HUD MAP correspondents and balance sheet shops. I broker the full lifecycle: ground up construction, bridge through lease up and stabilization, and 35 to 40 year HUD permanent on the back end. The institutional sweet spot is $10M and up. Range across the network is $5M to $500M+.
Facility Types I Broker
- Independent Living (IL): Age restricted apartments with hospitality services. Often financed agency or balance sheet, then refinanced into HUD or agency permanent.
- Assisted Living (AL): Private pay residents needing help with daily living. Bridge to HUD 232 is the dominant playbook.
- Memory Care (MC): Secured units for residents with dementia or Alzheimer's. HUD 232 friendly once stabilized.
- Skilled Nursing Facilities (SNF): Licensed nursing care, often Medicare and Medicaid funded. HUD 232 specialist territory.
- Continuing Care Retirement Communities (CCRC): Multi level campuses combining IL, AL, MC, and SNF.
- Active Adult 55+: Age restricted multifamily without care services. Often financed as conventional multifamily through Fannie or Freddie.
The Three Stage Capital Stack
- Stage 1: Ground Up Construction. Bank, debt fund, or HUD 232/221(d)(4) construction debt to build the facility. Typical 24 to 36 month construction term, interest only, with reserves for lease up.
- Stage 2: Bridge to HUD. Once the certificate of occupancy is issued, bridge debt carries the facility through lease up and stabilization. Most bridge lenders on the bench run dedicated bridge to HUD programs. Typical 12 to 36 month term.
- Stage 3: HUD Permanent. Once the facility hits stabilized occupancy and a trailing 12 of NOI, refinance into HUD 232 (new construction or sub rehab) or HUD 232/223(f) (existing). 35 to 40 year fully amortizing, non recourse, fixed rate.
- Acquisition bridge for existing facilities not yet HUD ready
- HUD 223(a)(7) streamlined refinance of existing HUD 232 loans
- Mezzanine and preferred equity to fill the construction or bridge stack
Loan Snapshot
- Loan Amounts
- $5M to $500M+ across the network
- Typical Sweet Spot
- $10M+
- Construction Term
- 24 to 36 months, interest only
- Bridge Term
- 12 to 36 months through lease up
- HUD Permanent Term
- 35 to 40 year fully amortizing, non recourse
- Closing Time
- 30 to 60 days bridge; 9 to 12 months HUD
- Property Types
- IL, AL, MC, SNF, CCRC, Active Adult 55+
- Geography
- Nationwide, drawn from the 200 plus active capital source network
- Rates
- Rates depend on the deal. Submit your file or jump on a call and I will give you a real number.
Rates depend on the deal. Submit your file or jump on a call and I'll get you a real number.
Why Bridge to HUD Wins on Senior Housing
HUD 232 is the cheapest long term capital available for senior housing and skilled nursing. Non recourse. 35 to 40 year fully amortizing. Fixed rate. But HUD will not close on a facility that has not stabilized, and HUD takes 9 to 12 months from application to firm commitment. Bridge to HUD solves both problems. Close on bridge debt today to fund acquisition or to take out construction. Stabilize the facility on the bridge. Refinance into HUD 232 on the back end with the takeout already structured by the same shop that wrote the bridge. We map both legs from the front end so leverage, recourse, prepay, and reserves on the bridge match what HUD will accept on the permanent.
Ground Up Senior Living. What Lenders Want to See.
Sponsor with senior housing operating experience, or a strong third party operator under contract. Feasibility study from a recognized senior housing consultant (Dixon Hughes, CliftonLarsonAllen, or similar). Detailed pro forma with realistic lease up curve and stabilized NOI. GC with senior housing build experience and a fixed price contract. Licensure pathway mapped for AL, MC, or SNF. Land and entitlements in hand or close to it.
Frequently Asked Questions
What is a HUD 232 loan?
HUD 232 is the FHA insured loan program for assisted living, memory care, skilled nursing, and board and care facilities. 35 to 40 year fully amortizing, fixed rate, non recourse. The cheapest long term capital available for senior housing. Originated through HUD MAP approved lenders. Application to firm commitment runs 9 to 12 months.
What is a bridge to HUD loan?
A bridge to HUD loan is a 12 to 36 month bridge designed to take the facility from acquisition or construction completion through stabilization, then refinance into HUD 232 or HUD 232/223(f) permanent debt. Most senior housing bridge desks on the network run dedicated bridge to HUD programs and write the takeout in house.
Can I get a ground up construction loan for assisted living?
Yes. Two main paths. (1) Bank or debt fund construction debt with a bridge to HUD takeout once the facility hits stabilized occupancy. (2) HUD 232/221(d)(4) which combines construction and 40 year permanent in a single loan. Path 2 has the longest timeline but the cheapest blended cost of capital.
What is the minimum loan amount for senior housing financing?
Bridge and balance sheet financing typically starts at $5M. HUD 232 has no formal minimum but most HUD MAP shops focus on $10M and up. The institutional sweet spot on this desk is $10M and up. Range across the network is $5M to $500M+.
Does HUD 232 cover independent living?
HUD 232 covers facilities that provide health related services (assisted living, memory care, skilled nursing). Pure independent living without health services is typically financed under Fannie Mae or Freddie Mac seniors programs or as conventional multifamily. Many CCRCs blend both, financed under HUD 232 because of the AL/SNF component.
Ready when you are.
Send me your file or pick up the phone. I answer 7 days a week.