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Assisted Living & Senior Housing Loans in Texas

Senior housing is the most operations-dependent property type we finance. The real estate matters, but the loan is really made against an operator’s ability to hold census, staff the building and stay on the right side of the state survey process.

What the file turns on

Census history and payor mix, the state licence and survey history, staffing ratios and turnover, and the operator’s track record in the same level of care.

Where deals fail

A first-time operator buying memory care, a building whose census was bought with discounted rates, and deficiency findings that have not been cured.

The levels of care are not interchangeable

Independent living, assisted living, memory care and skilled nursing carry different margins, different regulation and different lenders. A file has to say which one it is.

Our minimum loan is $200,000. We are a direct commercial lender working across the 43 states we serve, in business since 1998. We do not publish a rate for this product because the number depends on the file — call and we will quote the deal in front of us.

Medical & Dental Office Loans in Texas · SBA loans · Commercial lending · All loan types · All property types

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Service Areas: Houston | Dallas | Austin | San Antonio | Fort Worth | Near Me TX Construction Rates
Common Questions: Credit Score Required | How Long to Close | Hard Money vs DSCR | Bad Credit OK | DSCR Requirements | No Income Verification | Minimum Down Payment | Documents Required
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Senior Housing Finance

Assisted Living & Memory Care Loans in Texas:
Financing the Fastest-Growing Sector in Healthcare Real Estate

Texas is adding 500,000 residents per year and aging faster than it can build senior housing capacity. The 65+ population in Texas will nearly double by 2040 — creating a structural undersupply of assisted living, memory care, and skilled nursing beds that is already driving occupancy above 90% in most major markets. For operators and investors who understand the licensing and underwriting requirements, this is one of the most compelling commercial real estate opportunities in the state.

55–65%
LTV Range
1.35×
Min DSCR
92%+
TX ALF Avg Occupancy
SBA 10%
Down (Owner-Operated)
Most Common

Type A Assisted Living (16+ Beds)

Texas HHSC-licensed facilities providing 24-hour supervision, personal care, medication assistance, and meals. The dominant institutional format. Underwritten on operator NOI — private pay vs Medicaid mix matters significantly. Private pay operators command 60–70% higher margins.

LTV: 58–65% · Rate: call for today's rate · License: TX HHSC Type A required
Highest Demand

Memory Care / Dementia

Secured units serving residents with Alzheimer's and dementia. Higher staff ratios, specialized programming, higher daily rates ($150–350/day). Limited supply nationally — memory care vacancy rates are among the lowest in senior housing. Requires additional HHSC licensing beyond standard ALF.

LTV: 55–63% · Rate: Quoted on your deal · Premium rates: $150–350/day
Residential Scale

Type B ALF (1–15 Beds)

Smaller residential care homes — often converted SFR or small commercial building. Texas Type B license covers 1–15 residents. Lower capital entry point ($300K–$800K) vs institutional. SBA-eligible. Ideal for operators entering the space with a single home before scaling.

SBA 504: 10% down · Conv: 25–30% · Scale: 6–15 residents
Complex Care

Skilled Nursing Facility (SNF)

Medicare/Medicaid-certified skilled nursing — most complex regulatory environment, highest reimbursement rates, and most lender-intensive underwriting. Requires CMS certification, state licensure, and certificate of need in some Texas counties. Specialty lenders and HUD 232 financing dominant at this level.

HUD 232: 80–85% LTV · Conv: 55–60% · CMS cert required
Market Growth

Independent Living / 55+ Community

Age-restricted apartment communities without care services — residents live independently but in a senior-oriented environment. Amenity-rich, no licensing burden, financed like conventional multifamily. Fastest-growing segment in Texas DFW and Houston suburbs. DSCR and agency financing available.

LTV: 65–75% · Rate: call for today's rate · No care license needed
Value-Add

Acquisition & Repositioning

Buy an underperforming ALF (80% occupancy, below-market private pay mix), improve staffing and programming, shift payer mix toward private pay, and refinance at stabilized NOI. Bridge financing during repositioning. Texas has numerous legacy facilities ripe for professional management upgrades.

Bridge: 55–60% as-is · Rate: call for today's rate · Refi at 90%+ occ

Texas HHSC Licensing: The Non-Negotiable Before Any Financing

Every lender on an assisted living deal will require proof of current HHSC licensure or a clear timeline to licensure. The license is the business — without it, the facility cannot legally operate. Here's how Texas licensing breaks down:

Type A License

16+ residents. Full 24-hour care including medication management. Requires sprinkler system, licensed administrator, and RN medical director. Application to license: 4–6 months. Annual inspection.

Type B License

1–15 residents. Residential-scale care. Simpler infrastructure requirements. Can operate from adapted SFR. Shorter licensing timeline (2–4 months). Popular entry point for first-time operators.

Memory Care Endorsement

Added to Type A or B license. Requires secured unit, specialized dementia training for all staff, and activity programming documentation. Separate HHSC inspection. Adds 60–90 days to licensing timeline.

Administrator License

Texas requires a licensed Nursing Home Administrator (NHA) or Assisted Living Manager (ALM) for each facility. ALM requires 1-year experience + 40-hour training. Lenders verify the licensed administrator is identified before closing.

CMS Certification (SNF)

Skilled nursing facilities require both state licensure AND CMS Medicare/Medicaid certification. Survey process is separate from HHSC licensing. CMS surveys can take 12–18 months from initial application — factor into your project timeline.

Lender Documentation

Lenders require: current license certificate, most recent HHSC survey (and deficiency responses if any), administrator credentials, and operator track record at other facilities. Deficiency-free surveys = better terms.

What ALF Lenders Want to See

Current HHSC license in good standing — no outstanding citations or enforcement actions
Occupancy at 85%+ sustained for 6+ months — census consistency matters as much as the number
Private pay as 60%+ of payer mix — private pay margins are 3–5× higher than Medicaid, dramatically improving NOI
Experienced operator with 3+ years running licensed ALF or SNF — first-time operators face significantly harder financing
T-12 financials showing stable or growing revenue and positive NOI after all operating costs including management fees
Certificate of occupancy and life safety compliance — sprinkler systems, egress, fire suppression per NFPA 101

What Creates Friction or Kills the Deal

HHSC enforcement actions or outstanding deficiencies — class A or B violations are deal-stoppers until resolved
High Medicaid census (70%+) — Medicaid reimbursement rarely covers cost of care, compressing margins to near-zero
Operator with no track record — most lenders require operating history at a similar facility before financing a new or acquired one
High staff turnover — ALF operations are labor-intensive; turnover above 60%/year signals management problems lenders price in
Deferred building maintenance — life safety issues (sprinklers, fire doors, egress lighting) must be corrected before or at closing
Single-operator dependency — if the licensed administrator or owner-operator is the entire operation, lenders want a succession plan

Assisted Living or Memory Care Facility in Texas? Let's Structure the Financing.

Type A and B ALFs, memory care, independent living, and value-add repositioning — we've financed senior housing across Texas. SBA 504 at 10% down for owner-operators, conventional for investor-owned, bridge for acquisitions and repositioning. Licensed operator or not-yet-licensed with a timeline — bring us both. Term sheet within 24 hours.

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