Senior living
Memory care
Memory care financing is commercial real estate debt on a licensed community that specializes in care for residents with Alzheimer's disease and other dementia. Lenders treat it as assisted living with a specialized program, and underwrite its higher staffing costs and rates.
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 |
|---|---|---|
| HUD 232/223(f): max LTV / DSCR | 80% / 1.45x | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
| Bridge: max LTV | 75% | Corin sizing estimate; as of 2026-10-31 |
| Bridge: typical term | 36 months | Corin sizing estimate; as of 2026-10-31 |
| SBA 504: equity for special-purpose property | 15% | SBA SOP 50 10 (confirm the revision in effect at application); as of 2026-10-31 |
| Stabilization benchmark | Around 85% occupancy | HUD Handbook 4232.1 and prior MIP schedule; as of 2026-10-31 |
What changes in underwriting
Memory care carries higher revenue per resident and higher labor cost per resident than standard assisted living. Underwriters therefore focus on staffing ratios, care-level mix, turnover, and whether the community's license and physical plant support dementia care, such as secured perimeters and common areas.
Financing paths
Stabilized communities on HUD-sized balances typically go to 232/223(f). Newer or ramping communities start with a bridge sized for a HUD takeout. Owner-operators on smaller balances often use SBA 504.
- Stabilized, larger balance: HUD 232/223(f)
- Ramping census or new ownership: bridge-to-HUD
- Owner-operated, smaller balance: SBA 504
Frequently asked questions
Can a memory care community use SBA 504?
Yes, when the borrower owns and operates the community. Care facilities are special-purpose property, so equity is higher than for general commercial real estate.
Is memory care treated differently by HUD?
HUD 232 covers licensed assisted living with a memory care component. Lenders look closely at the license category, staffing and the care-level rent roll.
Does a new memory care wing count toward stabilization?
Newly added units usually need time to lease up before a lender counts their income. A bridge or phased structure can fit that gap.
Related programs
- Assisted livingCompare HUD, SBA, bank and bridge options for assisted living communities.
- California RCFEFinancing a California residential care facility for the elderly under Title 22.
- HUD 232/223(f) refinanceRefinance or acquire an existing, stabilized senior housing facility with HUD-insured fixed-rate debt.
- Bridge-to-HUDShort-term floating debt to stabilize a facility before a HUD 232/223(f) takeout.
- 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.