FHA Senior Housing Loans - HUD Section 231 Mortgages

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Section 231 Purpose

Section 231 increases the funding of senior housing properties and multifamily properties that house people with disabilities.

Eligible Uses

Section 231 can finance senior housing properties with at least eight units. Nonprofit sponsors are allowed a maximum loan amount equal to 100 percent of the replacement cost of the building. For other sponsors, the maximum loan amount is 90 percent of the replacement cost of the building.

Eligible Borrowers

Eligible mortgagors include private profit developers and non-profit borrowers.