Healthcare Property Loans

Healthcare Property Loans

Looking for a loan to purchase, develop, refinance, or substantially rehabilitate a residential healthcare facility?
Uptown Funding assists for-profit and non-profit clients through the process of obtaining FHA/HUD Section 232/223(f) financing, which can be used for a single project or a combination, such as refinancing of a nursing home coupled with new construction of an assisted living facility.

Eligible Properties

Licensed Nursing Homes, Assisted Living, Intermediate Care, and Board and Care

  • Must provide continuous protective oversight
  • Must offer three meals per day
  • Facility must be licensed by state
  • Non-resident day care not to exceed 20% of gross area and 20% of gross income
  • May include up to 25% non-licensed independent living units
  • Three years must have passed since last certificate of occupancy was issued

Contact Us

Uptown Funding
5215 N O'Connor Blvd. Suite 1100,
Irving, TX 75039

Office: 214-305-6955
Fax: 214-305-6954

Commercial Space

Limited to 20% of net rentable area and 20% of effective gross income


Single asset, special purpose entity, either for profit or non-profit

Loan Amount

Minimum Loan Size $5,000,000, No maximum (Limited by loan parameters and HUD does not allow for any equity take out for healthcare properties)



Interest Rate

Fixed for term of loan, determined by market conditions at time of rate lock (Rate lock deposit is 1% and refunded at closing)

Loan Parameters

Maximum loan amount will be the least of:

  • Recommended % of LTV
  • Recommended % of Purchase Price for loans that finance acquisition
  • Recommended Debt Service Coverage Ratio, or
  • Existing debt plus transaction costs and proposed repairs

Based on current economic and fiscal environment, HUD has recommended the following parameters:

  • For Profit Mortgagors: 80% LTV, 1.45 DSCR
  • For Non-Profit Mortgagors: 85% LTV, 1.45 DSCR

Term and Amortization

A maximum term of 35 years or 75% of the remaining economic life, fully amortizing

Prepayment and Assumption

Negotiable with best pricing for 10 years of call protection (can be a combination of lockout and/or penalty); Loan is fully assumable subject to HUD approval


  • Taxes and insurance are escrowed monthly
  • Replacement reserve required and the monthly deposit amount determined in accordance with HUD guidelines

Professional Liability Insurance

HUD will require minimum coverage of $1 million per occurrence; $3 million aggregate with a max deductible of $25,000; Waivers may be granted in cases where premiums are high and claim history is clean

Mortgage Insurance Premium

1% due to HUD at closing and 0.65% annually thereafter, escrowed monthly

HUD Application Fee

30 basis points ($3 per $1,000) on requested loan amount (due with submission of firm application to HUD)

HUD Inspection Fee

Greater of $30 per unit/bed or 1% of repairs

Third Party Reports

Appraisal, Phase I and Physical Needs Assessment are required


Typical firm application is submitted within 60 days of engagement; LEAN processing time varies based on OHP (Office of Healthcare Programs) volume