HUD Fills SNF $ Gaps.

In a market where conventional loans are becoming increasingly difficult to obtain by skilled nursing facility owners, the HUD loan remains an accessible product for such properties, declares Andrew L. Erkes, Cambridge Realty Capital Companies’ President. “The financial landscape is changing for skilled nursing facilities. We expect to see the demand for HUD loans growing over the next three years because of this.”

The operating costs of skilled nursing facilities are outpacing the rate of inflation, a trend that doesn’t appear to be waning over the next few years. In light of this, conventional lenders are red-flagging these borrowers, leaving many owners anxiously trying to find alternatives.

But, says Erkes, skilled nursing facility owners need not panic. Nor do they need to pursue drastic measures, like selling these facilities, or making drastic cuts to their operating budgets. “In spite of the challenging and unpredictable conventional lending market, HUD has stayed true to its mission to provide capital to skilled nursing facility borrowers,” proclaims Erkes. “Not only will HUD fill the funding void for skilled nursing facilities, but HUD loans also offer some enticing features.”