If you are interested in investing in an assisted living, skilled care, or memory care facility in Iowa, securing the right financing is an essential step in the process. Fortunately, the Housing and Urban Development Authority (HUD) provides mortgage loans suited to senior care homes, and their HUD LEAN improvements have made applying for these loans much simpler. Howell Investment Finance can help clients navigate the mortgage process for many different types of commercial property by offering up-to-date information, including info on how to acquire HUD financing.

What Are HUD 232 LEAN Loans?

The HUD 232 LEAN loan can help investors refinance, purchase,  renovate, or construct a senior care home. There are certain eligibility criteria a project must meet to receive funding. This includes a market study, credit history, a compliance record, and a physical exam of the property in question. Once it’s been established that the project meets these specific qualifications, the HUD will issue mortgage insurance that will provide coverage if a loan cannot be repaid.

How Can a HUD 232 Lean Loan Help You?

In an attempt to create more efficient loan processing, the HUD 232 Lean methodology has been implemented. As a result, many improvements have been made over the previous approval processes which entailed longer timelines and duplication of some procedures.

As part of the creation of the LEAN program, HUD has centralized processing in Washington, DC as opposed to various regional offices.  While deals ultimately get routed to regional offices, they are initially sent to Washington, DC. Underwriters now utilize standardized punch lists, which also greatly reduces the time it takes to process an application. These improvements were made in order streamline the overall application process and shorten the due diligence time.

One of the main reasons to choose a HUD LEAN loan is the term and amortization period. With a refinance, your amortization period and the loan term are up to 35 years. With a new construction/ perm loan, you will have up to a 40 year amortization and loan term. As you can see, once you go through the HUD Lean loan process, you may never have to refinance your loan again. If you choose to sell your property, it is assumable to a qualified investor. 

The HUD LEAN 232 interest rates are low and continue to be very attractive for borrowers. Now is the time to refinance your senior housing projects and take advantage of the great terms and low interest rates before the upcoming interest rate jump.

When it comes to commercial real estate financing, you can trust in the guidance provided by Howell Investment Finance. Visit the website for more information on loan types, or call (515) 233-8228 to speak to Denny Howell today.