HUD Launches Fast-Track “Express Lane” to Speed Up Funding for Senior Care Facilities

In a major move to accelerate financing for residential care institutions, the U.S. Department of Housing and Urban Development (HUD) has introduced a new streamlined application process under the FHA Section 232/223(f) program. The initiative, dubbed the “Express Lane,” is designed to fast-track low-risk refinance applications for facilities like skilled nursing homes, assisted living centers, and board-and-care homes.

HUD Secretary Scott Turner announced the policy shift on July 14, 2025, stating that the goal is to significantly reduce the time it takes for qualifying borrowers to receive funding approvals from as long as 150 days down to just 10 to 15 days.

“We’re eliminating unnecessary bureaucracy that delays essential financing,” Turner said. “This Express Lane is about acting with urgency and compassion to ensure vulnerable populations have access to quality care.”

Who Qualifies for the Express Lane?

The expedited review process will prioritize low-leverage, low-risk transactions. To be eligible for the fast-track process, applicants must meet specific FHA guidelines, including:

• Loan-to-value ratio capped at 70%
• Debt service coverage must meet minimum FHA-defined thresholds
• The facility operator must have been in place for at least two years
• The requested loan amount must not exceed $50 million (or $70 million in the NYC metro area)
• The application must be complete and ready for immediate underwriting
• Facilities must demonstrate a high standard of care

If all conditions are met, the application can bypass the traditional waitlist and proceed directly to FHA’s final decision phase.

Why This Matters

This development is particularly timely as the U.S. continues to grapple with rising long-term care demands due to an aging population. Access to affordable and timely financing is critical for care providers to maintain or expand services. Traditionally, the FHA’s Section 232 review timeline could take months delaying essential upgrades, refinancing opportunities, or even the acquisition of new care facilities.

The Express Lane is expected to slash approval times by up to 90%, giving care operators the flexibility they need to act quickly and serve their communities more effectively.

About the FHA Section 232 Program

The Section 232 Mortgage Insurance Program supports financing for the development, acquisition, and refinancing of licensed residential care facilities. These include nursing homes, assisted living centers, and similar institutions. By insuring lenders against losses, the program makes it easier and more affordable for operators to secure funding.

As of June 2026, FHA’s active Section 232 insurance portfolio includes over 3,800 facilities and represents $36.7 billion in total coverage across the country.

Looking Ahead

HUD’s move is part of a broader push under the Trump administration to modernize federal services and remove roadblocks for essential industries especially those serving at-risk populations. The Express Lane model could serve as a blueprint for future reforms in other federally insured lending programs.

With the Express Lane in place, HUD is aiming not only to improve funding timelines but to ensure that America’s most vulnerable seniors and those in need of residential care aren’t left waiting for critical services due to administrative delays. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.