Senior living
HUD 232/223(f) refinance
HUD 232/223(f) is the refinance and acquisition loan within Section 232. It replaces existing debt on, or finances the purchase of, a completed and stabilized licensed senior housing facility with a long-term, fixed-rate, fully amortizing, non-recourse mortgage insured by FHA.
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 |
|---|---|---|
| Term | Up to 35-year fixed, fully amortizing | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| 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 |
| Seasoning | 3+ years since construction completion | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| Stabilized occupancy | Around 85% | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| Practical minimum size | About 25 beds | Corin sizing estimate; as of 2026-10-31 |
| Indicative pricing | Ten-year Treasury + 1.40–1.80 points | Corin sizing estimate; as of 2026-10-31 |
When 223(f) is the right tool
Use 232/223(f) when the building is complete, licensed and operating steadily, and you want the longest fixed amortization available without personal recourse. Common uses are retiring a maturing bank or bridge loan, recapitalizing partners, and acquiring a stabilized facility with seller cooperation.
- Existing facility with steady trailing census and cash flow
- A maturing bridge, bank or CMBS loan that needs a long-term replacement
- Acquisition of a stabilized licensed facility
What can slow a 223(f) file
Most delays trace back to the file, not the program. Licensing gaps, a property and operator structure HUD has not seen before, thin trailing financials, deferred maintenance flagged in the capital needs assessment, and environmental findings are the usual causes.
Costs include the HUD application fee (0.3%), the lender financing fee, third-party reports and legal. Corin models these side by side with SBA and bridge options in the sizer so the all-in comparison is visible before you commit.
Frequently asked questions
What occupancy does a HUD 223(f) senior housing loan need?
HUD generally looks for stabilized operations, around 85% occupancy on a trailing basis. A transitional property can use a bridge loan first.
Can I cash out on a 232/223(f) loan?
Proceeds are sized to the lesser of the LTV and DSCR tests and HUD's allowable uses. Whether and how much equity can be taken out depends on the sizing result and HUD's current rules; an advisor confirms this with a HUD lender.
Is the rate fixed?
Yes. The rate is fixed for the full term once it is locked, which is a main reason owners choose HUD over floating-rate debt.
Related programs
- HUD Section 232FHA-insured, long-term, non-recourse debt for licensed healthcare real estate.
- Bridge-to-HUDShort-term floating debt to stabilize a facility before a HUD 232/223(f) takeout.
- Assisted livingCompare HUD, SBA, bank and bridge options for assisted living communities.
- Memory careLoans for memory care and dementia care communities.
- 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.