OCRF: Office of Residential Care Facilities in Relation to HUD 232 Loans
The Office of Residential Care Facilities (OCRF) is a subdivision of HUD's Office of Healthcare Programs (OHP) composed of healthcare industry professionals that oversees HUD-insured healthcare FHA 232 loan financing.
What is the Office of Residential Care Facilities (ORCF)?
The Office of Residential Care Facilities (OCRF) is a subdivision of HUD's Office of Healthcare Programs (OHP) composed of healthcare industry professionals that oversees HUD-insured healthcare FHA 232 loan financing.
The OCRF has 21 locations around the United States, with offices currently located in cities including New York, Boston, Los Angeles, San Francisco, Seattle, Portland, Denver, Chicago, St. Louis, Minneapolis, Washington D.C., Providence, Jacksonville, Detroit, Buffalo, Hartford, Manchester, Knoxville, Columbus, Newark, and Fort Worth.
To learn more about FHA 232 loans, fill out the form below to speak to a HUD/FHA loan expert.
Related Questions
What is the Office of Residential Care Facilities (OCRF) and how does it relate to HUD 232 loans?
The Office of Residential Care Facilities (OCRF) is a subdivision of HUD's Office of Healthcare Programs (OHP) composed of healthcare industry professionals that oversees HUD-insured healthcare FHA 232 loan financing.
The OCRF has 21 locations around the United States, with offices currently located in cities including New York, Boston, Los Angeles, San Francisco, Seattle, Portland, Denver, Chicago, St. Louis, Minneapolis, Washington D.C., Providence, Jacksonville, Detroit, Buffalo, Hartford, Manchester, Knoxville, Columbus, Newark, and Fort Worth.
To learn more about FHA 232 loans, fill out the form below to speak to a HUD/FHA loan expert.
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What are the eligibility requirements for HUD 232 loans?
In order to be eligible for HUD 232 financing, properties need to meet a variety of eligibility requirements, including offering continuous care, being appropriately licensed, and having at least 20 patients. To take out a HUD 232 or HUD 232/223(f) loan, a borrower must typically have experience successfully operating one or more facilities of the same kind that they intend to build or purchase. In addition, a borrower must also be structured as a single asset, special purpose entity (SPE). Eligible borrowers may either be a for-profit or a non-profit entity.
For more information about FHA 232 loans, you can fill out the form to speak to a HUD/FHA loan expert.
What are the benefits of HUD 232 loans?
HUD 232 loans have a variety of benefits for large-scale owners of senior properties, including:
- HUD 232 refinancing of multiple properties can greatly increase cash flow, potentially giving developers the capital to purchase or construct new assets
- HUD fixed-rate financing allows large companies to stabilize expenses and make accurate financial projections well into the future
- Low, fixed interest rates
- Loans are fully assumable (with FHA/HUD approval)
- HUD 232 loans are non-recourse, limiting risks for developers
What are the risks associated with HUD 232 loans?
HUD 232 loans come with significant risks. Major risks include the high upfront costs, long waiting times, and annual audits that these loans require. Additionally, borrowers must pay Mortgage Insurance Premiums (MIP) both initially and as an annual premium, and HUD property inspections are required. Furthermore, annual audited operating statements are required, and this program restricts owner distribution and also has cash out restrictions.
What are the steps involved in applying for a HUD 232 loan?
The HUD 232 loan application process typically follows these five steps:
- Application submission
- Preliminary underwriting
- Due diligence measures and third-party verification
- Receipt of HUD firm commitment letter
- Finalization of loan documentation and closing
For more information, please visit www.hud232.loan/terms-qualifications-and-guidelines.
