The LEAN Section 232 program provides financing for new construction/substantial rehabilitation of skilled nursing, assisted living, and board and care facilities with limited independent living units.
Section 232 is an FHA loan product that provides mortgage insurance on mortgages that finance residential healthcare facilities, such as, nursing homes, assisted living facilities and board and care facilities. Eligible Section 232 may be used to finance the purchase, refinance, new construction, or substantial rehabilitation of a project. A combination of residential healthcare uses is acceptable - e.g. refinance of a nursing home coupled with new construction of an assisted living facility. Section 232 may also be used to insure mortgages to install fire safety equipment in such properties. The benefit to the borrower is that the loan is at a fixed interest rate, often lower than conventional rates, and is non-recourse.