FHA® 231 Loans for Age-restricted Housing Projects

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The loans cater to the evolving demands of the senior living market, ensuring that your development meets the highest standards for comfort, accessibility, and community amenities.
Competitive Rates

FHA 231 Loan Terms and Requirements

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Loan Term & Amortization

During the construction phase, interest-only payments are followed by a 40-year fully amortizing permanent loan. The loan term is capped at 75% of the property's economic life for optimal financial management.

Maximum Loan Amount

Development Costs: Up to 85% for market-rate, 87% for LIHTC restricted, and 90% for properties with at least 90% rental assistance.

These costs encompass the value of land for new construction and the as-is value of the property
for substantial rehabilitation.

FHA Mortgage Statutory Limits: Adjusted for
the local high-cost factor.

Minimum Debt Service Coverage (DSC):
a) 1.176x DSC for market-rate properties.
b) 1.15x DSC for LIHTC restricted properties.
c) 1.11x DSC for properties with at least 90%
rental assistance.

Maximum LTV

85% loan-to-value (LTV) applies to market-rate or LIHTC-restricted properties with rents <10% below market.

For LIHTC-restricted properties with rents at least
10% below market, the LTV is 87%.

Projects with 90% or greater rental assistance
qualify for a 90% LTV.

Rate Structure

Fixed interest rate

Eligible Properties

Development of age-restricted properties, either through new construction or substantial rehabilitation, with tenancy restricted to individuals aged 62 and over.

Eligible Borrower

A singular asset entity, whether for-profit, nonprofit or public borrowers.

Underwriting Occupancy

Achieve a maximum economic underwriting occupancy as follows:

1. 93% for market-rate properties (with a minimum of 20% dedicated to market-rate units or LIHTC units with rents < 10% below market).

2. 95% for properties under LIHTC restrictions, covering at least 80% of units at rents at least
10% below market.

3. 97% for properties with at least 90% rental assistance or in-place rehabs with a minimum of 90% occupancy and 90% LIHTC restriction at
rents at least 10% below market.

Tax & Insurance Escrows

It requires monthly deposits


Nonrecourse financing as per HUD Regulatory Agreement.

Commercial Space

Limitations include a maximum of 25% of gross floor area and up to 30% of effective gross income.

Required Reports

Requirements encompass a Market Study, Appraisal, Architect/Cost Review, and Phase I Environmental assessment, along with CPA-reviewed financials or the last fiscal year—pertaining to projects involving substantial rehabilitation.


A frequently used prepayment penalty format is the "10-9-8-7-6-5-4-3-2-1-0" structure. This entails a 10% prepayment penalty in the first year, with a subsequent 1% reduction on each 1-year anniversary, ultimately reaching a 0% prepayment penalty by the 10-year anniversary.


The loan is fully assumable upon approval from both HUD & CID, along with the payment of an assumption fee.

Good Faith Deposit

It is based on type of property and loan size

Expense Escrow

Yes. Enough to encompass CID's costs and expenses, as well as third-party report expenditures.

Origination Fee

It is negotiable

HUD Application Fee

A nonrefundable fee of 0.3% of the loan amount is applicable, with 0.15% due to HUD at pre-application submission and an additional 0.15% at the firm application stage.

HUD Inspection Fee

A fee of 0.5% of the mortgage amount is charged for new construction, and for substantial rehabilitation, it is 0.5% of the total cost of repairs.

Rehabilitation Qualification

Repairs must surpass $15,000 per unit (adjusted for the local high-cost factor) or involve the replacement of two or more major building systems.

Davis–Bacon Act

Applicable to this loan program

HUD mortgage insurance premium (MIP)

Annual Mortgage Insurance Premium (MIP) rates are as follows:

1. Market rate properties: 0.70%
2. Affordable properties: 0.35%
3. Broadly affordable or energy-efficient properties: 0.25%

FHA 231 Loans & Its Benefits

What is FHA 231 Loan?

FHA® 231 loans are specifically crafted for age-restricted housing projects, covering both new construction and substantial rehabilitation.

Unlocking Opportunities with FHA® 231 Financing

Flexible Construction Options

Whether you're breaking ground on a new project or breathing new life into an existing property, our loans provide the flexibility to navigate the challenges of age-restricted housing construction and rehabilitation.

Competitive Terms

Enjoy competitive interest rates, fixed-rate options, and a range of terms that suit the specific needs of age-restricted developments.

HUD Expertise

We brings extensive experience in navigating the intricacies of HUD financing. Our team ensures a smooth and efficient process, from application to closing.

We Cover


States & US Territories

Capital Investors Direct provides commercial hard money loan financing options in the following geographic locations of the United States:


200 MSA Tier I & Tier II Cities

Maryland, Texas, Florida, Utah, Colorado etc. We offer CRE Bridge Loan in top cities like Denver, Chicago, Colorado, San Diego etc.

How it Works?

Capital Investors Direct funds different commercial properties across the country. Below are few commercial properties we lend hard money for –
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Fill Out the Form

Apply for a commercial property loan in
5 minutes by filling out the form


Get Approval

We will get back to you within 24 hours
with a written disclosure of all loan terms


Loan Funded

Within days, the money will be credited
to your account.

Why Choose Us?

We go above and beyond to add to our list of satisfied customers and ongoing clientele We go above and beyond to add to our list of satisfied customers and
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Efficient Refinancing Process

Our experience with FHA loans allows for an efficient refinancing process, minimizing disruptions for multifamily owners and ensuring a smooth transition.


Tailored Financial Solutions

We understands the unique financial needs. They can provide tailored solutions that align with the specific requirements and goals of the multifamily industry.


Streamlined Application Process

With experience in FHA loan programs, we facilitate a streamlined application and approval process for FHA loans, making it more accessible for multifamily owners.


Transparent Communication

Transparent and open communication is a hallmark of Capital Investors Direct. Borrowers can expect clear and comprehensive information about loan terms, conditions, and the refinancing process.

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