The program has financed over 4,000 senior housing properties
The US Department of Housing and Urban Development (HUD) has announced that its mortgage insurance program for senior housing ended the fiscal year with a record $3.7 billion in loan production.
The FHA 232 mortgage insurance program, which finances senior housing properties, closed a total of 288 loans this fiscal year. The program’s loan volume of $3.7 billion, which has an average loan size of $13 million, topped last year’s $3.6 billion.
Twenty-one lenders originated loans within the program in 2019, including ORIX Real Estate Capital (OREC). The company, through its Lancaster Pollard mortgage division, closed $903 million in par amount and completed seven construction loan transactions totaling $112 million, over 50% of the program’s total construction volume.
“The FHA 232 program remains an essential part of the seniors housing and care industry,” said Lancaster Pollard President Kass Matt. “By leveraging the program’s efficiency, we were able to close 78 loans through the program in 2019, totaling $903 million. The collective benefits for our clients are immense.”
Since its outset in 2010, HUD’s Lean program has insured over 4,000 loans amounting to $37.6 billion (71% for skilled nursing communities and 27% for assisted living).
