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FHA 232 Loans

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At Capital Investors Direct, we understand the critical role healthcare facilities play in our communities. We provide tailored financing options that empower your healthcare facility to thrive and provide exceptional patient care.
Competitive Rates

FHA 232 Loan Terms and Requirements

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Loan Term & Amortization

Interest-only construction loan period precedes a 40-year fully amortizing permanent loan, ensuring financial flexibility during the project's initial phases and long-term stability thereafter.

Maximum loan amount

The financing amount is determined by the most conservative of three factors: 90% of HUD replacement cost, the maximum Loan-to-Value (LTV) ratio, and the Debt Service Coverage Ratio (DSCR) of 1.45x.

Additionally, the specific percentages for Skilled Nursing Facilities/Independent Living Units (SNF/ILU), new construction Assisted Living Facilities/Memory Care (ALF/MC), and sub-rehabilitation ALF/MC vary for for-profit and nonprofit entities.

SNF/ILU has an LTV of 80% for for-profit and 85% for nonprofit.

New construction ALF/MC has an LTV of 75% for for-profit and 80% for nonprofit, while sub-rehab ALF/MC has an LTV of 80% for for-profit and 85% for nonprofit.

Fixed Rate

Fixed rate for construction and permanent

Eligible Properties

The financing covers new construction or substantial rehabilitation of assisted living, memory care, intermediate, skilled nursing facilities, or a combination thereof.

The project allows a maximum processing occupancy of 95%.

Commercial space is restricted to not exceed 10% of gross floor area or 15% of gross income.

Additionally, independent living units are limited to 25% of total units (up to 30% with a granted waiver).

Ineligible Properties

Continuing Care Retirement Communities (CCRC) with life-care fees, Long-Term Acute Care (LTAC), adult day services, or entities currently undergoing bankruptcy proceedings.

Eligible Borrower

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

Ineligible Borrower

Owner, operator, or any affiliated entities currently undergoing bankruptcy proceedings or having filed/emerged from bankruptcy within the last five years.


Owners, operators, or management agents are required to showcase a successful track record aligning with the development or rehabilitation of properties similar in type, size, and complexity.

For owner-operators, a minimum of three years of ownership and operating experience is necessary, and skilled nursing facility (SNF) administrators must also possess three years of relevant experience.

Tax & Insurance Escrows

Monthly deposits are mandatory.


Nonrecourse subject to HUD agreement .

Commercial space

Limits include a maximum of 10% for gross floor area and 15% for gross potential income, with a 20% vacancy rate applied.

Notably, daycare space is excluded from the commercial category.

Required reports

Comprehensive assessments include a Market Study, Appraisal, Architect's Review of Construction Costs and Drawings, and Phase I Environmental Evaluation.


Usually set at 10% in the first year, decreasing by 1% annually; alternative prepayment options may be considered based on market conditions.


Approval from both CID and HUD, as well as the payment of an assumption fee, is required.

Good faith deposit

Subject to negotiation and contingent on the property type and loan size.

Expense escrow

Yes, adequate to cover both CID's expenses and the costs of third-party reports.

Origination fee

Subject to negotiation

HUD application fee

A fee of 0.15% is payable to HUD at the pre-application stage, followed by another 0.15% at the firm application stage.

Opting for the nonrefundable straight-to-firm HUD application incurs the full 0.3% fee.

HUD inspection fee

A fee of $5 per $1,000 (0.5%) applies to the mortgage amount for new construction, and the same rate is levied on improvement costs for substantial rehabilitation.

Legal/closing fee

The borrower is responsible for covering CID's legal counsel fee and any additional miscellaneous closing costs.

Rehabilitation qualifications

Exceeding 15% of the appraised value post-rehabilitation, or replacement of a minimum of two major building systems.


The borrower is required to furnish HUD with evidence/documentation from the relevant local/state tax licensing authorities, demonstrating approval for the operation of the project or relevant portions, before project occupancy.

Davis–Bacon Act

Construction and rehabilitation work adhere to Davis-Bacon labor standards and wage requirements.

HUD mortgage insurance premium (MIP)

Market rate properties incur a 0.77% annual MIP, affordable properties have a 0.45% rate, and there is a 1% upfront MIP due at closing.

FHA 232 financing  Loans & Its Benefits

What is FHA 232 Loan?

The FHA® 232 loan is a financial product offered by the Federal Housing Administration (FHA) specifically designed for healthcare projects involving new construction or substantial rehabilitation.

Unlocking Opportunities with FHA® 221(d)(4) Financing

Dedicated to Healthcare Advancement

FHA® 232 loans are specifically crafted to support healthcare new construction and substantial rehab, demonstrating our commitment to advancing and enhancing medical facilities.

Comprehensive Financing for Healthcare Projects

We offers comprehensive financing solutions covering a spectrum of healthcare projects, including new construction and substantial rehabilitation.

Enhanced Patient Care Facilities

Benefit from improved patient care facilities through new construction or substantial rehabilitation. FHA® 232 loans enable you to create modern, efficient, and patient-friendly healthcare environments.

Key Feature of FHA 232 Loans

At Capital Investors Direct, we understand the critical role healthcare facilities play in our communities.

Patient-Centric Focus

FHA 232 loans aim to improve patient care by enabling the development of modern, patient-friendly healthcare environments. The focus is on enhancing the overall quality and efficiency of healthcare facilities.

Diverse Facility Coverage

Loan cover a range of healthcare facilities, including assisted living, memory care, and skilled nursing facilities, providing financial support for different types of healthcare projects.

Preservation of Asset Value

FHA 232 loans contribute to the preservation and potential appreciation of the asset value of healthcare facilities, supporting the long-term viability of these properties.

Flexible Financing

The loan offer flexible financing options to support the construction or renovation of healthcare facilities, helping owners and operators meet the evolving needs of the healthcare industry.

Competitive Terms

FHA 232 loans typically come with competitive interest rates and terms, contributing to the financial feasibility of healthcare projects.

Commitment to Regulatory Compliance

Borrowers are expected to adhere to HUD guidelines and requirements, ensuring regulatory compliance throughout the construction or rehabilitation process.

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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Loan Funded

Within days, the money will be credited
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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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Expertise in Commercial Loans

Capital Investors Direct likely has a team of professionals with expertise in commercial lending, providing borrowers with specialized knowledge and guidance.


Tailored Financing Solutions

Lenders often offer customized financing solutions to meet the unique needs of individual borrowers and their specific projects.


Diverse Loan Products

A comprehensive range of loan products allows borrowers to choose the financing solution that best suits their commercial needs, whether it's for construction, acquisition, or refinancing.


Flexible Loan Terms

We offer flexibility in structuring loan terms, allowing borrowers to choose terms that align with their financial goals and project timelines.

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