Assisted living and nursing home loans
Long-term financing for assisted living facilities, nursing homes and other senior care residences. We place your loan with a lending partner that understands how these properties earn.
The pre-qualification form takes about a minute.
Programs that fit senior care property
Senior care property is income property with an operating business inside it. That makes it harder to finance than an apartment building, and loan terms often don’t match how long owners plan to hold. Our lending partners offer a dedicated program built for these properties.
Senior care property program
- Loan amounts from $250,000 to $5 million
- Up to 75% loan-to-value (LTV), meaning the loan can be up to 75% of the property’s appraised value
- 30-year fixed options, with interest-only options available
- Available for purchases and cash-out refinances
The program fits properties that are well maintained and cash flowing, or close to it with minor capital improvements. Properties that need major renovation work fall outside it.
Other routes
- Conventional commercial loans. For borrowers who can fully document income and assets and want the lowest cost of borrowing.
- Commercial refinance loans. For owners who want to pull out equity, replace a variable rate with a fixed one, or pay off a seller note or short-term loan.
What lenders look at
Cash flow
Lenders start with the property’s net operating income: revenue after operating costs, before the mortgage. They compare it to the annual loan payments using the debt service coverage ratio (DSCR). A ratio above 1.0 means the property earns more than its debt costs. Our DSCR calculator helps you check a deal before you apply.
Occupancy
Residents drive revenue, so lenders review current occupancy and how stable it has been. Specific occupancy requirements depend on the property and the loan structure.
Physical condition
The program is for structurally sound properties. Expect an appraisal and a property inspection. Deferred maintenance can lower the value or the loan amount.
Operator experience and licensing
Lenders generally ask who runs the facility day to day and whether its licensing is in good standing. A strong operator makes the income more believable.
Leverage and equity
With a maximum of 75% LTV, plan on at least 25% equity in the property, either as a down payment or as existing equity on a refinance.
Purchase or cash-out refinance
On a purchase, lenders review the price against the appraisal and the property’s operating history. On a cash-out refinance, they look at how the property has performed under your ownership and what you plan to do with the cash. Either way, have recent operating statements and a rent roll ready.
Not sure the property fits? Send your loan expert the address, recent operating statements and current occupancy. They can tell you quickly whether the program is a match, or point you to another route.
How it works
- Apply online. Complete the 1-minute pre-qualification form with your property and loan request.
- Talk to your loan expert. You are assigned one Standout loan expert who reviews the property and confirms it fits the program.
- Compare your options. Your loan expert presents the best available options from our lending partners.
- Close. We package the file for the lending partner you choose and guide you through to closing.
Common questions
What types of properties qualify?
Assisted living facilities, nursing homes and similar senior care residences that are structurally sound and need no major renovations.
Can I use this for a cash-out refinance?
Yes. Cash-out refinances are eligible as long as the property meets the program criteria.
Is a minimum occupancy required?
Occupancy terms depend on the property and how the loan is structured. Your loan expert will walk you through the specifics for your scenario.
How much can I borrow?
Loan amounts typically run from $250,000 to $5 million, at up to 75% of the property's value.
Is interest-only available?
Yes. Interest-only options are available alongside 30-year fixed terms, depending on the deal.
Explore the programs
All loan programs- Loan program Conventional commercial loans Bank and credit-union financing. For strong credit and full documentation, usually the lowest-cost path. Banks and credit unions
- Loan program Commercial real estate refinance loans Pull out equity, pay off a seller note or short-term loan, or swap a variable rate for a fixed one. Cash-out or rate change
Ready to take the next step?
Apply in about a minute. Your loan expert will guide you from there.