FHA cuts processing times from five months to two weeks for eligible low-risk transactions
U.S. Department of Housing and Urban Development (HUD) Secretary Scott Turner announced the launch of a new “Express Lane” to expedite Federal Housing Administration (FHA) insured refinancing applications under the FHA Section 232/223(f) Mortgage Insurance for Residential Care Facilities program. This new review process will significantly reduce processing times and accelerate access to critical financing for skilled nursing, assisted living, and board-and-care facilities.
“We’re eliminating needless delays that stand in the way of access to critical financing, which helps vulnerable Americans access vital services,” said HUD Secretary Scott Turner. “The result is a new and innovative Express Lane that will slash wait times by up to 90 percent. Under President Trump’s leadership, we’re empowering the federal government to move urgently with commonsense compassion and deliver mission-minded results for the American people.”
Under the new process, FHA will prioritize the review of certain low-risk, low-leverage transactions to cut the time between application submission and the issuance of a Firm Commitment to 10 to 15 days. Previously, FHA managed reviews of all Section 232 applications based on the date of application submission, resulting in processing times of up to 150 days, regardless of the transaction.
FHA has specific criteria for transactions that will be eligible for Express Lane processing, which include, but are not limited to:
- A maximum of 70 percent loan to value;
- Limits on the allowable minimum Debt Service Coverage Ratios;
- Specific quality of care attributes;
- The facility operator must have been in place at the facility for two or more years prior to the application submission;
- The mortgage amount must not exceed $50 million ($70 million for the greater New York City area); and
- The application must be ready to underwrite and a Firm Commitment decision must be able to be made immediately upon submittal.
FHA’s Section 232 Mortgage Insurance for Residential Care Facilities program provides mortgage insurance for residential care facilities including nursing homes, assisted living facilities, and board-and-care homes. The program is available nationwide through FHA-approved lenders who originate mortgages to finance the purchase, refinance, new construction, or substantial rehabilitation of a facility. As of June 2026, FHA had an active mortgage insurance portfolio of $36.7 billion across more than 3,800 residential care facilities.