Tool · HUD 232, Fannie Mae, Freddie Mac
Assisted living loan sizer
One building, three permanent lenders. Enter NOI and value once and the sizer runs HUD's 232/223(f) tests, Fannie Mae's Seniors Housing terms and Freddie Mac's Seniors Housing grid, then shows which gives the most and which test holds each one back.
The terms behind each line
| HUD 232/223(f) | Fannie Mae Seniors Housing | Freddie Mac Seniors Housing | |
|---|---|---|---|
| Max loan to value | 80% existing assisted living (85% qualifying nonprofit) | 75% | 75% for 7+ year terms; 70% for 5 to under 7 years; stand-alone memory care 65% (60%) |
| Min debt service coverage | 1.45, with mortgage insurance in debt service | 1.40 if more than half assisted living or dementia care; 1.30 if more than half independent living | 1.40 assisted living; 1.30 independent living; 1.60 stand-alone memory care |
| Term and amortization | Up to 35 years, fully amortizing, fixed | 5 to 30 year term, up to 30 year amortization | 5 to 10 years, up to 30 for fixed rate |
| Cash out | None on a 223(f) | Not addressed on the term sheet | Not addressed on the term sheet |
| Insurance or fees in this tool | 0.65% annual MIP, 1.00% upfront MIP and 0.30% application fee financed | None modeled | None modeled |
| Other limits | At least 20 beds, state licensed, 3 years since completion, independent living at most 25% of beds | Existing, stabilized, purpose-built; dementia care as part of a continuum of care | Skilled nursing at most 20% of NOI |
Sources: HUD Handbook 4232.1 REV-1, Section II, chapters 2 and 3 (effective January 19, 2017); HUD mortgage insurance premiums from the Federal Register notice of June 26, 2025; Fannie Mae Seniors Housing Financing Term Sheet, read October 24, 2026; Freddie Mac Optigo Seniors Housing Loan term sheet dated April 2026. Fannie Mae also sets minimum management fees for underwriting (Multifamily Guide, Part III, chapter 5): 5% of gross potential rent for properties that are mostly independent living or assisted living with 60 or more units, and 10% for smaller assisted living and all-dementia properties. Make sure the NOI you enter carries at least that fee.
What the comparison leaves out
Each lender underwrites its own NOI, and agency loans often carry reserves, a refinance test at maturity and interest-only options that change the number. HUD's 223(f) also requires two years of seasoning on debt that does not meet its eligible-debt rules. Treat the bars as which program is likely to size highest, then ask lenders for quotes.
Estimates only, not a loan offer, commitment or rate quote. ALF Atlas is operated by Janover Capital LLC and is not affiliated with HUD, FHA, CMS, Fannie Mae, Freddie Mac or any government agency.
Questions
How much can I borrow on an assisted living facility?
Each program takes the lower of a value test and a debt service test. HUD 232/223(f) allows up to 80% of value on an existing assisted living facility (85% for a qualifying nonprofit) at 1.45 coverage with mortgage insurance counted. Fannie Mae and Freddie Mac Seniors Housing allow up to 75% at 1.40 coverage when most units are assisted living or memory care.
Can HUD finance a stand-alone memory care building?
Memory care is not its own Section 232 facility type. HUD finances it as units within a licensed assisted living facility or nursing home, so a memory care building licensed as assisted living, with at least 20 beds, is an assisted living project to HUD. Freddie Mac has a separate stand-alone memory care grid at 65% and 1.60 coverage for terms of seven years or more.
Can independent living be financed under HUD 232?
Only as part of a 232 project: HUD Handbook 4232.1 allows up to 25% of a project’s beds to be independent living. A property that is mostly independent living fits Fannie Mae or Freddie Mac, which both size it at 1.30 coverage.