The U.S. Department of Housing and Urban Development/Federal Housing Administration’s (HUD/FHA’s)’s Section 232 LEAN mortgage insurance program plays a vital role in helping seniors housing and healthcare communities obtain attractive and beneficial financing. Following a year with suppressed loan volume, there is a consensus among HUD lenders that fiscal year (FY) 2025 will comfortably surpass FY 2024’s total of $3.1 billion. Reasons for optimism include factors such as improving operating fundamentals, a wave of pending maturities in need of permanent financing, and demographics that grow more favorable by the day as baby boomers reach retirement age.
Accordingly, Lument’s Jason Smeck expects a substantial uptick in seniors housing and care production for 2025 and beyond. “We are seeing better industry financial performance and increased interest in the program,” Smeck said. “For fiscal year 2205, we are positioned to significantly exceed FY 2024 production levels, and our future pipeline continues to build.”
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