Most independent living facilities for senior citizens have service agreements with local medical clinics and hospitals, but don't take on any of the liability of that care themselves. They are, however, often able to acquire financial assistance in the form of grants and subsidies for offering low cost or insurance paid housing to senior citizens. These are bonuses to a bank, guaranteed money coming in that you can use to pay back your mortgage. It's very similar to applying for a mortgage on a residential rental property where subsidies and housing vouchers will be accepted.

 

When applying for a commercial mortgage to buy an independent living facility, it's a good idea to let the bank know that it is more than just an apartment complex. One of the reasons for that was outlined above. Another is that lenders themselves have incentives to give out mortgages for anything that provides housing to low or no income seniors. Some of their funding is underwritten by federal and state programs that cater to the same type of individuals, so you'll find you get more offers when you apply for a commercial mortgage for an independent living facility than you would with just a simple apartment complex or multi-unit residential house.

 

If you're applying for a commercial mortgage to buy an independent living facility, make sure you have a solid business plan and a back-up plan if anything doesn't go according to schedule. Do not assume, just because there's a need for your services, that you'll have overnight success. A facility like what you're attempting to put together needs to build a reputation and establish itself over time, so make sure you have the ways and means to carry it while it's in its early stages. A bank or mortgage broker, before they give you financing, will ask how you intend to do that.

 

Complete your business plan and fill out the single application here at iBank. We'll shop your request around to various lenders and get you as many offers as possible. You should receive offers with different interest rates and payment terms to choose from and also some input from lenders if there is more information you can provide to improve your chances of getting approved. There are also resources here at this site that can help you put together a solid business plan.