Underwrite the opportunity
We review property performance, sponsorship, business plan, and financing priorities.
Senior Living capital
Senior Living & Assisted Living Financing
Quick answer: Senior living financing covers the full continuum of care from independent living and assisted living to memory care and skilled nursing facilities. As the U.S. population ages rapidly, senior housing demand is projected to grow significantly, creating strong long-term investment fundamentals. Lenders with healthcare real estate expertise provide acquisition, refinance, construction, and bridge capital for operators and investors.
NationwideMarket coverage
1,000+Capital relationships
$2MM+CLS engagement floor
24 hoursInitial response
Property fit
Financing senior living assets.
Senior living underwriting is more complex than conventional multifamily because lenders evaluate operating metrics (occupancy, revenue per occupied unit, staffing ratios, regulatory compliance) in addition to traditional real estate fundamentals. Properties with strong operators, proven track records, and favorable demographic profiles in their trade areas attract the most competitive financing. HUD/FHA 232 programs offer the most aggressive permanent financing terms for stabilized facilities. Commercial Lending Solutions works with banks, HUD lenders, bridge lenders, and debt funds that specialize in healthcare and senior housing, helping owners navigate the unique requirements of this asset class.
Underwriting starts with the asset: income durability, tenancy or operations, physical condition, market position, sponsorship, and the proposed business plan shape the lender universe.
01
Independent Living
02
Assisted Living
03
Memory Care
04
Continuing Care Retirement Communities (CCRC)
05
Skilled Nursing Facilities (SNF)
06
Active Adult / 55+ Communities
07
Combination IL/AL/MC Campuses
08
Senior Affordable Housing
Capital options
How we approach senior living financing.
We match the property, sponsorship, and business plan to lenders with current appetite, then compare proceeds, pricing, recourse, reserves, prepayment, and closing certainty.
| Financing path | Where it may fit |
|---|---|
| HUD / FHA 232 Loans | Programmatic multifamily or housing capital with defined underwriting, documentation, and eligibility requirements. |
| Bank Permanent Loans | Relationship-oriented capital that can offer local market knowledge and structural flexibility, with recourse often considered. |
| Bridge Loans | Flexible short-term capital for acquisition, lease-up, renovation, repositioning, or other transitional business plans before stabilization or sale. |
| CMBS | Non-recourse execution with broad property appetite, balanced against more standardized servicing and prepayment provisions. |
| Construction Loans | Draw-based financing for ground-up development, major renovation, or conversion, sized to budget, schedule, sponsorship, and the planned permanent exit. |
| Mezzanine & Preferred Equity | Subordinate capital that can fill the gap between senior debt and sponsor equity, with returns and controls matched to execution risk. |
| Government-supported owner-occupied financing with program-specific eligibility, occupancy, and documentation standards. |
How we work
One process. Multiple capital sources.
The objective is not simply to find a lender. It is to create a credible, comparable set of financing choices around the transaction.
Property-level insight and lender appetite have to meet before pricing becomes meaningful.
Target active lender desks
The request is matched to capital sources that understand the asset and market.
Compare complete proposals
Rate, proceeds, recourse, reserves, prepayment, and execution risk are evaluated together.
Manage the closing
We coordinate lender diligence, third-party reports, documentation, and issue resolution through funding.
National reach
Market knowledge where the asset requires it.
We arrange senior living financing nationwide while accounting for local property fundamentals and lender appetite.
Questions
Senior Living financing, clarified.
The final structure depends on the property, sponsor, market, and requested execution.
Sizing your equity? See the down payment guide for commercial property: typically 20% to 30% down, with SBA owner occupied from 10%.
Senior living facilities can access HUD/FHA 232 loans (the most competitive permanent option), bank permanent loans, bridge loans, CMBS financing, construction loans, mezzanine capital, and SBA 504 for owner-operated facilities. The best financing option depends on the facility type (IL, AL, MC, SNF), stabilization status, and operator track record.
HUD 232 is a government-insured mortgage program specifically for residential care facilities including assisted living, nursing homes, and board and care homes. It offers the most aggressive terms in senior housing: up to 85% LTV for refinances, 40-year fully amortizing terms, non-recourse, and some of the lowest fixed rates available. The trade-off is a longer closing timeline (4-6 months) and significant regulatory requirements.
Assisted living lenders evaluate occupancy rates, revenue per occupied unit, staffing ratios and labor costs, regulatory compliance history, state licensing status, operator experience, resident acuity mix, local demographic trends (75+ population growth), and competitive supply in the trade area. Strong operators with proven track records and facilities in markets with favorable demographics receive the best terms.
Yes, generally 50-150 basis points higher than conventional multifamily due to the operating business component and regulatory complexity. However, HUD 232 permanent financing offers rates comparable to agency multifamily. The higher cost reflects the healthcare operational risk, state licensing requirements, and the more intensive management needed for senior care facilities.
Most permanent lenders require 85-90%+ stabilized occupancy for senior living facilities, though this varies by care type. Independent living may qualify at 85%, while assisted living and memory care typically need 88-90%+ to demonstrate stabilization. Bridge lenders will finance facilities at 60-80% occupancy for lease-up or turnaround situations.
Let's evaluate your senior living financing request.
Share the property and transaction. We will respond within 24 hours with an initial view.