Assisted Living Facility Loans: Our Specialty

An assisted living facility loan finances the purchase, conversion, or expansion of a residential assisted living (RAL) home — typically a 10- to 20-bed home providing care for seniors. This is our niche. We work with assisted living investors in most states — licensing requirements vary by state, and we factor that into every deal. While most loan brokers treat assisted living as an afterthought, we specialize in it: we understand the business model, the licensing landscape, and what makes these deals work. If you’re investing in senior housing, you want a lender who speaks the language.

Up to 75% of value on small care homes, with seller-carried seconds reaching about 90% combined. Larger facilities up to 80% under FHA 232.

Who Assisted Living Loans Are For

Investors buying an existing assisted living facility — occupied or vacant — as an income-producing business and property
Real estate investors converting a single-family home into a licensed residential assisted living facility
Current RAL operators expanding to a second or third home
Commercial investors moving into senior housing for its recession-resistant demand
Operator-landlords who want to own both the real estate and the business

Senior housing isn’t just real estate — it’s real estate plus operations. We underwrite both.

How Assisted Living Loans Work

Financing a residential assisted living facility sits at the intersection of commercial real estate lending and business lending, because the value is in the property and the licensed operation.

Deal review. We look at the property, the bed count and layout, the license status, and — for operating facilities — the census (occupancy), rates, and financials.
Structure. Depending on the deal, financing can cover the real estate purchase, the business acquisition, conversion/renovation costs, or expansion. Each piece is underwritten on its own merits.
Operator strength matters. Lenders want to see capable management — your experience, your administrator, your plan for staffing and census. A great building with no operator plan is a weak deal.
Licensing. Every state regulates assisted living facilities differently, and the license path affects timeline and value. We work in most states and factor the regulatory picture into every deal rather than discovering it at closing.
Closing and beyond. Terms are structured around the facility’s cash flow — occupied beds at sustainable rates — with an eye toward long-term hold or portfolio growth.

Because this is a specialty product, terms and structures vary more deal-to-deal than with standard residential investor loans. Contact us for current options — we’ll talk through your specific facility, not a generic program sheet.

Why Investors Choose Assisted Living — and Why They Choose Us for It

Why the asset class:

Demographics are destiny. America’s senior population is growing fast, and demand for residential-scale assisted living keeps climbing.
Recession-resistant income. Senior housing occupancy holds up far better in downturns than most commercial real estate.
Premium per-bed revenue. A well-run 16-bed home can generate income that dwarfs a comparable single-family rental.
Undersupplied niche. Quality small-scale assisted living is scarce in most markets — good operators stay full.

Why us:

We actually specialize here. Most brokers will “look into” assisted living financing. We start there. We’re active in the assisted living investment community and understand the difference between a good facility and a good-looking building.
We underwrite the business, not just the bricks. Census, rates, staffing, license status — we know what matters and we ask the right questions up front, so there are no surprises late in the deal.
Conversion expertise. Turning a house into a licensed RAL is a specific project with specific costs and timelines. We’ve seen how these go and can help you budget honestly.

Documentation, Handled the Compliant Way

Assisted living deals come with heavy documentation — licensing paperwork, operating agreements, compliance files, entity structuring. That processing and prep work is handled by Sewell Business Services, our sister company, which keeps the fee structure cleaner and more compliant for you than burying those costs in broker compensation. One team for the loan, one team for the paperwork — no gray areas.

Assisted Living: What to Know by Market

We’re based in Fort Worth, Texas, and we finance assisted living deals in most states. Licensed in Texas, Florida, California, and Arizona; investment-property loans available in most states. Markets differ across the country — here’s what we look at wherever you invest:

Every state licenses assisted living its own way, with different license types based on the level of care. Your financing plan should account for the license that fits your model in your state — we factor the regulatory picture in from the start, not at closing.
The residential model (roughly 10–20 beds) is the sweet spot we see most, in market after market — big enough for real revenue, small enough to feel like home, which is exactly what families want.
Demand is national. Aging populations are growing in nearly every region of the country, but competition and staffing markets vary a lot by local market. We look at the micro-market — the neighborhood and the local operator landscape — not just the metro or the state.
Conversion projects — buying a large single-family home and converting it — are a common entry point wherever the housing stock supports it. Budget for fire suppression, accessibility, and licensing-driven renovations, not just cosmetics.

Frequently Asked Questions

What counts as a residential assisted living facility? Typically a home licensed to provide housing, meals, and personal care for seniors — commonly in the 10- to 20-bed range. It’s smaller and more home-like than a large corporate senior living community, and families increasingly prefer it.

Can I finance the purchase of an existing, operating facility? Yes — that’s one of the most common deals we see. We’ll look at the property, the license, and the facility’s financials (occupancy, rates, expenses) together.

What about converting a house into an assisted living facility? Very common, and very financeable with the right plan. The key costs are licensing-driven renovations — fire safety, accessibility, egress — on top of normal rehab. We’ll help you think through the full budget before you buy the house.

Do I need experience operating a care facility? It helps significantly. If you’re new to operations, lenders will want to see your plan: an experienced administrator, staffing model, and how you’ll fill beds. We can talk through what a credible operator plan looks like.

How is this different from a regular commercial real estate loan? A standard CRE loan underwrites the property. An assisted living deal’s value lives largely in the licensed operation — the census and the cash flow it produces. A lender who doesn’t understand that will misprice or kill your deal. That’s exactly why specialization matters here.

Can I expand from one home to several? Yes — portfolio growth is the natural path in this niche, and financing is available for second, third, and larger acquisitions once your first operation is performing.

How long does an assisted living purchase take to close? It depends on license status, whether the facility is operating, and the financing structure. Licensed, operating facilities with clean financials move fastest. We’ll give you an honest timeline for your deal.

FHA 232 for Larger Facilities

For licensed facilities with 20 or more beds, the FHA 232 program is worth a look. It is HUD mortgage insurance for assisted living, memory care, board and care, and skilled nursing facilities, covering purchases, refinances, and new construction.

Purchase or refinance (232/223(f)): fixed rate, fully amortizing, non-recourse, terms up to 35 years, no balloon payment
New construction or major rehab: terms up to 40 years
Up to 80% of value on a purchase or refinance for most operators
The facility must be state licensed with at least 20 beds, and an existing facility generally needs about three years of operating history for a purchase or refinance

These loans take longer to close than a conventional loan. The trade-off is a long fixed term and a non-recourse structure on a facility you plan to hold. If you are looking at a bigger facility, this is the conversation to have first.

Let’s Talk About Your Assisted Living Deal

Whether you’re buying your first RAL home, converting a property, or expanding a portfolio — talk to a broker who actually knows this space before you talk to anyone else.

Call 817.862.6922 or email joel@lawtonbuildingandloan.com.

Joel Lawton, NMLS #380245 — Lawton Building and Loan.

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