Skilled Nursing & Assisted Living - Acquisition/Refinance Sec 232/223(f)



FHA Section 232/223(f)
Mortgage Insurance for Skilled Nursing & Assisted Living Facilities

FHA Commercial Lenders for Acquisition or Refinance

The 232/223(f) Program is insured by the Federal Housing Administration (FHA) and provides access to affordable capital for the refinancing or acquisition of skilled nursing, assisted living, memory care, and other residential care facilities.  As FHA commercial lenders, our financing is high leverage, fixed rate, long-term, self-amortizing, non-recourse, assumable, first lien mortgage debt.

  • No equity take-out is permitted.
  • Repairs (not to exceed 15% of the “as-improved” market value) may be included in loan amount
  • Financing may be combined with secondary financing and grants.


Eligible Borrowers:

Single Asset Entity
For-profit, not-for-profit, and municipally-owned
Licensed skilled nursing facilities with at least 20 beds
Assisted living facilities with at least 5 residential units designed for persons at least 62 years of age who need assistance with at least 3 activities of daily living.
Intermediate care facilities and residential care homes are eligible
Facilities must offer residents three meals a day.
Not available for properties charging “up-front” or “founders” fees

Loan Term:

Up to 35 years

Loan Amount:

Refinance Transactions:  The lesser of:
• 80% of the appraised value of the project and major movable equipment (85% for non-profit mortgagors);
• 100% of the sum of outstanding indebtedness plus transaction costs
• Debt service coverage at 1.45:1;

Purchase Transactions:  The lesser of:
• 80% of the appraised value of the project and major movable equipment (85% for non-profit mortgagors);
• 85% of eligible acquisition costs (90% for non-profit mortgagors)
• Debt service coverage at 1.45:1;

Interest Rate:

Fixed interest rate, subject to market conditions


Qualifies for Ginnie Mae government guaranteed mortgage-backed securities, direct placement or may be used to credit enhance tax-exempt or taxable bonds.


Processing can be completed within 120 days from submission of the application.

Personal Liability:

None, FHA is non-recourse.


FHA application fee, inspection fee, lender fees, and mortgage insurance premiums will be collected.  Various third party reports are required.   All of these costs may be eligible for inclusion in the mortgage note and reimbursable to client at closing.


  • Commercial space may be permitted, limited to 20% of gross floor area.
  • Commercial income limited to 20% of gross income.
  • Day care space may not exceed 20% of gross floor area.
  • Day care income may not exceed 20% of gross income.
  • Annual audit of operations required to be submitted to FHA and Oppenheimer.
  • Surplus cash may be distributed regularly, with semiannual reconciliations provided to FHA.
  • Can be combined with supplemental loans via FHA 232/241(a).

This is a general outline of the program requirements.  For complete information and to determine how your property can benefit from this financing opportunity, please contact your Oppenheimer representative at [email protected], or call (215) 631-9151.

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Oppenheimer was the lender on a 238 unit apartment community we developed in Macon,Georgia,under a Section 221(d)(4)-HUD loan.  We found them to be very professional and our working relationship was great.  Draws were funded in a timely manner and they continue to service our loan in a very satisfactory manner.”



Michael Goldner

Vice President, Homecorp