In one sentence
The FHA program insuring loans for residential care facilities, including skilled nursing and assisted living.
The longer version
Section 232 finances healthcare properties, which adds operator, licensing, and Medicare/Medicaid layers on top of the usual real estate diligence. The collateral is a going concern, not just a building.
232 diligence and closing lists include operational and regulatory exhibits absent from standard multifamily, which is why 232 shops keep a distinct program template.
Common questions
- What is a HUD 232 loan?
- An FHA-insured loan for residential care facilities, including skilled nursing, assisted living and board and care, for acquisition, refinancing, construction or rehabilitation.
- Why is HUD 232 underwriting different?
- Because the property is also an operating business. HUD reviews the operator, licensing, occupancy, reimbursement sources and operating history alongside the real estate.
- What additional parties are involved in a HUD 232 loan?
- Typically the operator and a separate property owner, with an operating lease and operator agreements HUD requires, plus HUD's healthcare office review.
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