Program Overview

The LEAN 241(a) program is a financing program designed to insure a second mortgage to finance repairs, additions and improvements of skilled care nursing homes, intermediate care, assisted living and personal care facilities that already have an existing FHA insured mortgage.


Single purpose entities that can either be profit or non-profit motivated.

Personal Liability

None. Loans are non-recourse.

Loan Amount

There is no maximum loan cap associated with this program.


The term is limited to the term of the existing loan.


80% of the project’s value for profit motivated skilled nursing facilities and assisted living facilities and 85% of the project’s value for non-profit skilled nursing and assisted living facilities.

Amortization and Assumability

This loan is fully amortized and assumable.

Interest Rate

Interest rates are fixed at closing. Rates are typically set lower than conventional financing due to the credit enhancement provided by FHA at closing.

Mortgage Insurance Premium

Mortgage insurance premium is paid annually based on the outstanding principal. Premiums range between .45% and .72% depending on the project.

Interested in This Program?

Please contact us and one of our experienced loan officers will reach out to assist you.

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