DSCR Loans for Care Homes & Assisted Living Facilities
Specialized financing for eligible residential care homes, with individual room rents considered under this lender’s ALF DSCR program.
Start Your ApplicationThe Residential Assisted Living Investment Model
Residential assisted living (RAL) combines housing and care services in a residential setting. Property eligibility and qualifying room rent are separate parts of the financing review.
This lender’s ALF DSCR program can use individual room rents from permitted rooms. Two months of rent receipts are required in all cases, including permitted-room rents. Form 1007 remains required. Total facility revenue and resident payments that include care or meals are not automatically qualifying room rent.
This is a lender-specific ALF program—not a general rule for DSCR financing. This lender’s regular DSCR programs do not accept room rents for qualification. A separate operator is not permitted under this lender’s ALF DSCR program. Each ALF scenario is subject to case-by-case approval and applicable overlays.
How Care Home DSCR Underwriting Works
The property must be clearly residential in nature. A separate operator is not permitted under this lender’s ALF DSCR program. Ordinary residential safety modifications, such as bathroom handrails, are acceptable. The lender’s written ALF guidelines prohibit commercial features, including features such as commercial kitchens, parking lots, and reception or concierge areas.
- Permitted room rents — Individual room rents can support qualification under this lender’s ALF DSCR program.
- Rent receipts — Two months of rent receipts are required in all cases, including permitted-room rents.
- Form 1007 — The appraisal’s Form 1007 remains required, even when individual room leases are provided.
- Room rent, not total revenue — Separate housing rent from care-service and meal charges; do not assume all facility receipts qualify.
Loan Parameters
These terms apply to this lender’s ALF DSCR program, subject to case-by-case approval and applicable overlays. They are not universal DSCR requirements.
Frequently Asked Questions
Related Specialty Programs
Other specialty residential programs available through Patrick:
Ready to finance your care home or RAL facility?
Share the property address, permitted room configuration, room leases, two months of rent receipts, residential features, and licensing status with Patrick Penner. Include your purchase or refinance objective so he can review the scenario under this lender’s ALF program.