Acquisition Construction Financing

FHA SECTION 232/223(f)

Financing for the Purchase or Refinancing of Existing Nursing Homes, Assisted Living Facilities and Specialized Use Projects.


  • Maximum loan to value is 90% (85% for for-profits); maximum term is 35 years with full amortization.
  • Loan is pre-payable, assumable and non-recourse.
  • Requires a minimum 1.11x (1.17x for for-profits) debt service coverage based on a maximum of 95% occupancy.
  • Repairs may not cost in excess of 15% of the project’s value after repairs are completed or involve replacement of 2 or more major building components.
  • Cost of repairs and initial deposit to a reserve fund for building/equipment replacement can be included in the loan.
  • Projects must be at least three years old prior to filing an application and must not have been substantially rehabilitated within that period.
  • Facilities must comply with the State’s eligibility requirements concerning licensure and operating requirements.


0.3% Application Fee to FHA
1.0% Mortgage Insurance Premium (up-front at closing)
1.0% Inspection Fee (on repair amount)
2.0% Maximum Financing Fee
1.5% Maximum Placement Fee
2.0% Costs of Issuance for Tax-Exempt Bond Transactions

An annual 0.5% Mortgage Insurance Premium (0.45% for low income housing tax-credit deals) payable to FHA is required. Additional fees are required for third party market studies, environmental reports, appraisals, and building inspection and engineering reports. The cost of these reports may be included in the financing.


  • Full escrows required for property insurance, real estate taxes, and FHA mortgage insurance premium.
  • Replacement reserve escrow for on-going replacement of depreciable items is required for the term of the loan.

NOTE: Under Lean processing, loans underwritten at statutory maximum limits and minimum debt service coverage ratios will be considered “higher risk” transactions and subject to more intense review.

Other Financing Programs

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CFO Capital Partners, its affiliates and principals are not a United States Securities Dealer nor Broker nor US Investment Adviser.  CFO Capital Partners, its affiliates and principals is a  Consulting Firm and in some instances a Private Investor. All Emails and related correspondence are never to be considered a solicitation for any purpose in any form or content. We do not intend to, nor do we, provide investment advice or counsel to any particular transaction. You, as the Recipient, hereby acknowledges this warning and disclaimer. If acknowledgment is not accepted, Recipients must return the document copies, in their original condition, to the Sender via email or postal services immediately