(248) 826-1172 Check Your Options

The Adult Family Entrepreneur Loan

You don't have a deal problem. You have a lender problem.

A care home is real estate with a business inside it. We help first-time owners, operators and investors finance the whole deal, from the purchase to the long-term hold, and we may be able to finance the business too.

  • Specialized residential care property financing
  • Owner-operators and real estate investors
  • Business cash-flow and asset-based options, subject to eligibility
Max Lloyd & Justice Roberts
Renown Mortgage · You talk to us, not a call center
See How It Works

Check your financing options

About 90 seconds

Not a loan application. Completing it does not pull your credit. A real person reviews every answer. By submitting, you agree to be contacted about your inquiry as described in the consent language above. Message and data rates may apply.

Real estateWe finance your 1–4 unit residential home

BusinessWe may be able to finance the business

Owner-operators & investorsFirst home, next home, or a portfolio

No license neededTo close with our program

Why deals stall

Most lenders understand houses. Few understand care homes.

From the street it's a house. On paper it's a small business. When a lender can only read half of it, the file stalls.

Specialized property use

Many lenders won't touch a home with a care use, and appraisals often miss the upgrades.

Business ownership and operator leases

Property in one company, care in another, or a lease to an operator. Most lenders can't read it.

Nontraditional business income

Write-offs make tax returns undersell what your business really earns.

Renovation and licensing timelines

Licensing takes months. Your loan shouldn't depend on income the home hasn't earned yet.

How it works

The Adult Family Entrepreneur Loan

It isn't one loan product. It's how we work: we look at the borrower, the real estate, the care business and the stage of the deal together, then match the scenario to the financing structures that fit it.

  1. Stage 1: Buy the home

    Know your financing structure before you make an offer.

  2. Stage 2: Convert and license

    Budget the upgrades, inspections and state licensing timeline.

  3. Stage 3: Open or lease the home

    Run it yourself or lease to an operator, and start a track record.

  4. Stage 4: Hold, refinance, or expand

    Refinance on documented cash flow or pull equity for the next home.

A later refinance is a new loan with its own approval and isn't guaranteed. That's why we plan for it on day one.

Check Your Financing Options

Who we help

Which one are you?

Same house, very different loan files. Pick yours and we'll tailor the questionnaire.

Aspiring entrepreneur “I want to purchase a property and start an assisted living business.” We look at your cash flow and assets, not what the home might earn after it's licensed. This is me Existing operator “I own or operate care homes and want to acquire another property.” Your track record is an asset. We use it to finance the next property. This is me Real estate investor “I want to own residential care real estate and lease it to an operator.” You own the property. A licensed operator runs the home under a long-term lease. This is me

Partnering with an operator? Bringing the capital while someone else runs care works too. Start here

Who you'll work with

Talk to Max and Justice

Two mortgage professionals who understand the whole transaction. You work with us directly, from the first call to closing.

Justice Roberts, founder of Renown Mortgage

Justice Roberts

Founder · Renown Mortgage

Justice built Renown Mortgage to serve entrepreneurs. When he saw residential assisted living investors getting turned away for financing, he created the Adult Family Entrepreneur Loan.

NMLS #1269831 · Verify on NMLS Consumer Access
Max Lloyd, CMPS, Private Wealth Mortgage Banker at Renown Mortgage

Max Lloyd, CMPS®

Private Wealth Mortgage Banker · Renown Mortgage

Max works with business owners, entrepreneurs and investors whose income doesn't fit a standard file, qualifying them on cash flow and assets rather than tax returns alone. After meeting too many care home investors who'd been denied elsewhere, he helped co-found the Adult Family Entrepreneur Loan.

NMLS #2374416 · Verify on NMLS Consumer Access
(248) 826-1172 [email protected]
Check Your Financing Options

By state

Financing by state

Every state names, sizes and licenses care homes differently. Pick yours.

AK

Alaska: Assisted living home financing

  • RegulatorDOH Residential Licensing
  • Small homesLicense needed at 3+ unrelated adults
  • Buying an operating homeLicense isn't transferable without state approval
Check options in Alaska

Overview

Alaska licenses assisted living homes through the Department of Health's Residential Licensing unit. A license is required once a home serves three or more adults who aren't related to the owner, or at any size if the home receives state or federal payment for services.

Terminology and classifications

Alaska uses one term, assisted living home, for homes that provide housing, food and help with daily living. A home serving only one or two residents with no state or federal payment can operate without a license.

When does an Alaska care home need a license?
When it serves three or more adults who aren't related to the owner, or at any size if it receives state or federal payment for services.
Does an Alaska assisted living license transfer to a buyer?
Not automatically. The license is tied to the location, people and organizations named on it, and a transfer needs the department's approval.

Buying & converting

Buying an existing home

An Alaska license is limited to the location, people and organizations named in the application, and it isn't transferable without the department's approval. Plan for the buyer to go through licensing, and talk to Residential Licensing before you close.

Converting a house

The process starts with the New Home Application Packet. A licensing specialist is assigned to the application, and an on-site inspection is part of approval. The home also needs an emergency evacuation plan that meets the state's life and fire safety rules.

Owner-operators

New providers attend the state's orientation, offered in person and by webinar. If you'll live in the home you're financing, the loan may not qualify as business-purpose financing; raise it on the first call.

Investor-landlords

A new home starts on a provisional license, and an operator can't apply for another home until each current home has passed its probationary period. Factor that into growth plans with your operator.

Licensing & zoning

Income and documentation

Keep the operating company's books separate from the property's so the care revenue and the rent can each be documented on their own.

Licensing and zoning diligence

Zoning is set locally, and boroughs treat care homes differently. Kodiak, for example, requires a conditional use permit in single-family zones. Confirm with the city or borough before you go under contract.

Appraisal and special use

Most small homes are appraised as single-family residences; care-specific improvements may not be fully valued.

Sources

Reviewed 2026-11-05. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Alaska's regulators and local officials.

AZ

Arizona: Assisted living home financing

  • RegulatorADHS
  • Small homesA home is 10 or fewer residents
  • Buying an operating homeBuyer applies for its own license
Check options in Arizona

Overview

Arizona separates Assisted Living Homes (10 or fewer residents) from Assisted Living Centers (11 or more), both licensed by the Arizona Department of Health Services (ADHS).

Terminology and classifications

Homes are licensed for supervisory, personal or directed care services. Adult Foster Care Homes are a separate, smaller category.

What's the difference between an assisted living home and a center in Arizona?
Size. A home has 10 or fewer residents; a center has 11 or more and goes through additional review.

Buying & converting

Buying an existing home

The current licensee notifies ADHS ahead of a change of ownership, and the new owner submits an initial application and can't operate until ADHS licenses it.

Converting a house

Local building and permit approval comes before the state application. A 2026 Arizona law (SB 1473) limits cities and counties from restricting assisted living homes of ten or fewer residents in residential zones based on resident count; local spacing rules can still apply. Confirm the law's effective date and local rules.

Owner-operators

Each home needs a certified assisted living manager. ADHS has a defined review window after a complete application, followed by an onsite inspection.

Investor-landlords

If you lease to an operator, vet the operator's ADHS record and certified manager.

Licensing & zoning

Income and documentation

Lenders want documented operating history, not a pro forma, before counting revenue.

Licensing and zoning diligence

Confirm local spacing rules and HOA restrictions; the 2026 law addresses resident count, not every local requirement.

Appraisal and special use

Larger homes built or expanded for ten residents can be harder to compare to typical houses. Expect the appraiser to need more explanation.

Sources

Reviewed 2026-10-27. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Arizona's regulators and local officials.

CA

California: RCFE and board-and-care financing

  • RegulatorCDSS Community Care Licensing
  • Small homes6 or fewer residents counts as a residential use
  • Buying an operating homeBuyer applies for its own license
Check options in California

Overview

In California, the small homes most people call board-and-care homes are licensed as Residential Care Facilities for the Elderly (RCFEs) by the Department of Social Services' Community Care Licensing Division.

Terminology and classifications

"Board-and-care" is the everyday name; the license is an RCFE under the California Residential Care Facilities for the Elderly Act. RCFEs are licensed through CDSS Community Care Licensing, with applications handled by its Centralized Applications Bureau.

Is a board-and-care home the same as an RCFE?
For elderly residents, yes: "board-and-care" is the common name, and the state license is an RCFE.
Do I need a conditional use permit for a six-bed RCFE?
Generally not. California treats RCFEs serving six or fewer as a residential use. Confirm with the local planning office before you buy.

Buying & converting

Buying an existing RCFE

California RCFE licenses aren't transferable. The buyer files a change-of-ownership application as a new licensee, and residents and the agency receive advance notice of the sale. Expect the license timeline to drive the closing date.

Converting a house

State law treats an RCFE serving six or fewer residents as a residential use of property, so it generally can't be held to zoning requirements that wouldn't apply to a family home in the same zone.

Owner-operators

Applicants complete a three-part CDSS orientation, and the facility needs a certified administrator. A fire clearance from the local fire authority and a pre-licensing inspection are part of the process.

Investor-landlords

Leasing a California home to an experienced RCFE operator is a common investor structure. With high property values, the rent-to-payment math matters; lenders will compare lease rent to the payment and to market rent.

Licensing & zoning

Income and documentation

For cash-flow qualification, clean business bank statements from the operating company carry more weight than projections.

Licensing and zoning diligence

CDSS reviews the applicant's finances as part of licensing, so lenders and the state may ask for overlapping documents. Line up the fire clearance early.

Appraisal and special use

Most six-bed homes are valued as single-family residences. Added baths and accessibility work may not be reflected dollar for dollar, which matters in high-price markets.

Sources

Reviewed 2026-10-27. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to California's regulators and local officials.

FL

Florida: Assisted Living Facility (ALF) financing

  • RegulatorAHCA
  • Small homes6 or fewer residents counts as a single-family use
  • Buying an operating homeBuyer applies for its own license
Check options in Florida

Overview

Florida licenses every size of assisted living as an Assisted Living Facility (ALF) through AHCA, from a converted single-family home to a large community.

Terminology and license types

The license is an Assisted Living Facility, regulated by the Agency for Health Care Administration (AHCA). Florida statute adds specialty licenses on top of a standard ALF license: Extended Congregate Care (ECC), Limited Nursing Services (LNS) and Limited Mental Health (LMH).

Can I close on a Florida home before the ALF license is issued?
Yes, with our program the home doesn't need to be licensed before closing. Plan for the AHCA timeline and carrying costs before residents move in.
Does an existing Florida ALF license transfer when I buy?
No. The buyer applies for a new license, and AHCA requires 60 days' written notice of the change of ownership.

Buying & converting

Buying an existing ALF

A Florida ALF license doesn't pass to a buyer. The new owner applies for its own license, and the seller must notify AHCA in writing at least 60 days before the change. Build that window into your closing timeline.

Converting a house

Under Florida's community residential home statute, a home with six or fewer residents is treated as a single-family, noncommercial residential use, subject to spacing rules from other licensed homes. Seven to fourteen residents brings local notice and review.

Owner-operators

If you'll run the home, plan for administrator training (Florida requires core training and a competency test within 90 days of hire) and Level 2 background screening for owners and staff with resident access. Lenders will ask who the licensee and administrator are.

Investor-landlords

Owning a Florida home leased to a licensed ALF operator is common. Underwriting focuses on the lease and the operator's track record. Confirm the operator's license history before you sign.

Licensing & zoning

Income and documentation

Florida ALF revenue can include private pay and, where applicable, public program payments. That's business income for cash-flow-based qualification, not rent. Keep the operating company's books separate from the property's.

Licensing and zoning diligence

Check spacing from other licensed homes before you go under contract; a home that's too close to another may not qualify as a residential use. Local notice is required at occupancy.

Appraisal and special use

Small Florida ALFs are usually appraised as residential property. Insurance cost and flood zone also matter to lenders.

Sources

Reviewed 2026-10-27. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Florida's regulators and local officials.

GA

Georgia: Personal care home financing

  • RegulatorDCH
  • Small homes2 or more residents; 25+ is assisted living
  • Buying an operating homeBuyer applies for its own license
Check options in Georgia

Overview

Georgia licenses Personal Care Homes through the Department of Community Health. A personal care home serving 25 or more residents and licensed for assisted living care is an Assisted Living Community.

Terminology and classifications

A Personal Care Home serves two or more unrelated adults. The rules mainly distinguish homes under 25 beds from those with 25 or more.

Does Georgia have a state zoning protection for small personal care homes?
We didn't find one. Zoning is handled locally, and some counties require special permits.

Buying & converting

Buying an existing home

The license doesn't pass to the buyer. The buyer's application must be approved first, with written notice to the state and residents at least 30 days before the sale.

Converting a house

Georgia leaves zoning to local governments, and the state requires documentation of local zoning approval. Some counties require their own special land use permits.

Owner-operators

Applications require a recent fire safety inspection with no violations and a recent electrical inspection, plus administrator qualifications.

Investor-landlords

The change-of-ownership packet asks for proof of property ownership or a lease, so a clean, written lease helps both the operator's license and your loan.

Licensing & zoning

Income and documentation

Treat resident fees as business revenue and keep the property lease separate, particularly if you own both sides.

Licensing and zoning diligence

Because zoning is local, get written confirmation from the county or city before going under contract.

Appraisal and special use

Sprinkler and fire-safety upgrades for larger homes may not appraise dollar for dollar.

Sources

Reviewed 2026-10-27. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Georgia's regulators and local officials.

ID

Idaho: Residential assisted living and certified family home financing

  • RegulatorIDHW
  • Small homesCertified family home: 1 to 4; assisted living: 3+
  • Buying an operating homeBuyer applies for its own license
Check options in Idaho

Overview

Idaho has two small-home models, both overseen by the Department of Health and Welfare: Residential Assisted Living Facilities (RALFs) for three or more adults, and Certified Family Homes, where the provider lives in the home with up to four residents.

Terminology and classifications

A Certified Family Home serves two residents by default, or up to four with a variance, and the provider must live there. A Residential Assisted Living Facility serves three or more unrelated adults and needs a licensed administrator.

What's the difference between a certified family home and an assisted living facility in Idaho?
Size and who lives there. A certified family home has up to four residents and the provider lives in the home; a residential assisted living facility serves three or more and is run by a licensed administrator.
Does Idaho zoning allow a small care home in a residential neighborhood?
Generally yes. State law treats homes for eight or fewer elderly people or people with disabilities as a residential use. Confirm with the city before you buy.

Buying & converting

Buying an existing facility

An Idaho RALF license isn't transferable. A new owner or operator goes through licensing before operating, and a certified family home certificate is tied to the named home and provider.

Converting a house

Construction plans must be stamped by an Idaho architect or engineer and approved before work begins, followed by an on-site fire and life safety evaluation. The state notes its policy review can take up to 90 days.

Owner-operators

Plan for a licensed administrator and the policy review timeline. If you'll live in the home as a certified family home provider, the loan may not qualify as business-purpose financing; raise it on the first call.

Investor-landlords

The licensing application asks for a purchase agreement, lease or deed, so a clean written lease with your operator helps both the license and the loan.

Licensing & zoning

Income and documentation

Keep the operating company's books separate from the property's so the care revenue and the rent can each be documented on their own.

Licensing and zoning diligence

Idaho law treats a home caring for eight or fewer elderly people or people with disabilities as a residential, single-family use, and cities can't require special permits a regular house wouldn't need. Confirm local fire code compliance early.

Appraisal and special use

Most small Idaho homes are appraised as single-family residences; care-specific improvements may not be fully valued.

Sources

Reviewed 2026-11-05. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Idaho's regulators and local officials.

MI

Michigan: Adult foster care home financing

  • RegulatorLARA
  • Small homesFamily home up to 6; group homes up to 20
  • Buying an operating homeBuyer applies for its own license
Check options in Michigan

Overview

Michigan licenses Adult Foster Care (AFC) homes by size: family homes for up to six adults, small group homes up to twelve, and large group homes up to twenty.

Terminology and classifications

An AFC family home serves up to six adults in a private residence, and the licensee must live in the home. Small group homes serve up to 12, large group homes 13 to 20, and congregate facilities more.

Do I have to live in a Michigan AFC home?
For a family home (six or fewer), the licensee must live in the home. Confirm the rules for group homes with the state.

Buying & converting

Buying an existing home

Michigan AFC licenses can't be transferred, bought or inherited. The buyer applies for its own license; plan review requirements also apply to changes of ownership for larger homes.

Converting a house

Michigan's zoning act treats small state-licensed residential facilities as a residential use permitted in residential zones. Group homes of seven or more need local zoning approval and Bureau of Fire Services plan review before work starts.

Owner-operators

The family-home model requires the licensee to live in the home. If you'll live there yourself, the loan may not qualify as business-purpose financing; raise it on the first call.

Investor-landlords

The live-in requirement applies to family homes. If you plan to lease to an operator, confirm the staffing and residency rules for the home type with the state.

Licensing & zoning

Income and documentation

Resident revenue belongs to the operating business; document it cleanly for cash-flow qualification.

Licensing and zoning diligence

Homes with wells or septic systems need county health inspections. Confirm which state agency currently handles AFC licensing.

Appraisal and special use

Large group homes with commercial-style fire systems can fall outside residential appraisal norms.

Sources

Reviewed 2026-10-27. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Michigan's regulators and local officials.

OR

Oregon: Adult foster home financing

  • RegulatorODHS / OHA
  • Small homesUp to 5 residents
  • Buying an operating homeBuyer applies for its own license
Check options in Oregon

Overview

Oregon Adult Foster Homes serve up to five residents in a home-like setting and are licensed by the Oregon Department of Human Services, or by the Oregon Health Authority for mental health homes.

Terminology and classifications

Adult foster homes are the small-home model; residential care and assisted living facilities are larger settings licensed separately.

How many residents can an Oregon adult foster home serve?
Up to five under current rules. Confirm with ODHS, since capacity changes have been proposed.

Buying & converting

Buying an existing home

Licenses cover only the named location and licensee and aren't transferable, so a buyer applies for its own license.

Converting a house

Oregon's land use law defines adult foster homes as residential homes, and the state checks for other licensed facilities nearby before licensing.

Owner-operators

Applicants complete orientation and training and must show resources to operate the home for at least two months. Licensees generally live in the home unless a resident manager or 24-hour staff cover it. If you'll live there yourself, the loan may not qualify as business-purpose financing.

Investor-landlords

With five residents, rent has to fit a smaller revenue base, so lease terms need careful sizing.

Licensing & zoning

Income and documentation

Smaller capacity means lenders look closely at the borrower's overall income and reserves, not just the home.

Licensing and zoning diligence

Capacity rules have been the subject of recent legislative proposals. Confirm current limits with ODHS before you underwrite a deal around more residents.

Appraisal and special use

Most adult foster homes appraise as single-family homes.

Sources

Reviewed 2026-10-27. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Oregon's regulators and local officials.

TN

Tennessee: Assisted-care living and home for the aged financing

  • RegulatorHFC / DDA
  • Small homesTier 1 home for the aged: up to 5 residents
  • Buying an operating homeChange-of-ownership filing 60 days before closing
Check options in Tennessee

Overview

Tennessee licenses Assisted-Care Living Facilities and Homes for the Aged. Small homes for adults 55 and older with up to five residents are Tier 1 homes, licensed by the Department of Disability and Aging; larger homes and assisted-care living facilities are licensed by the Health Facilities Commission.

Terminology and classifications

The two license types are Assisted-Care Living Facility (ACLF) and Home for the Aged. Homes for the Aged are split by size: Tier 1 (up to five residents, through the Department of Disability and Aging) and Tier 2 (six or more, through the Health Facilities Commission).

Which Tennessee agency licenses a small home for the aged?
A Tier 1 home (up to five residents age 55 and older) is licensed by the Department of Disability and Aging; six or more goes through the Health Facilities Commission.
Do I need a certificate of need in Tennessee?
Not for an assisted-care living facility or home for the aged, based on the Commission's published list.

Buying & converting

Buying an existing facility

For a Commission-licensed facility, the buyer files a change-of-ownership application with a letter of intent 60 days before closing, and the Commission ratifies it at its next meeting. Confirm with the agency which process applies to your purchase.

Converting a house

The Commission reviews building plans before construction. For an existing single-family home with six or fewer beds, schematic drawings are accepted instead of sealed plans. Sprinklers are required above 12 beds, and the state notes Tier 1 homes with more than three residents will likely need them.

Owner-operators

The administrator needs certification from the Health Facilities Commission. After you request the life safety survey, it's done within about 10 days, and the health survey follows 30 to 45 days later; no residents move in before the initial approval.

Investor-landlords

Ask your operator which agency will license the home, since Tier 1 and Tier 2 homes go through different departments with different timelines.

Licensing & zoning

Income and documentation

Lenders want documented operating history or a written lease, not projections, before counting revenue.

Licensing and zoning diligence

Tennessee doesn't require a certificate of need for these homes. Zoning protections for small group homes may not cover homes run on a commercial basis, so confirm zoning with the city or county before you go under contract.

Appraisal and special use

Sprinkler and life safety upgrades for larger homes may not appraise dollar for dollar.

Sources

Reviewed 2026-11-05. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Tennessee's regulators and local officials.

TX

Texas: Assisted living facility financing

  • RegulatorHHSC
  • Small homesType A or Type B, based on resident needs
  • Buying an operating homeBuyer applies for its own license
Check options in Texas

Overview

Texas licenses assisted living facilities through HHSC Long-Term Care Regulation, classified by resident needs rather than size: Type A and Type B.

Terminology and classifications

Type A residents can evacuate without staff help and don't need routine overnight attendance. Type B residents may need help evacuating and overnight attendance, which affects building requirements.

Should I license Type A or Type B?
It depends on the residents you plan to serve; Type B allows residents who need evacuation help but carries heavier building requirements. Decide before you budget the conversion.

Buying & converting

Buying an existing facility

In Texas, a change of ownership is triggered by a change in the facility's tax identification number and is processed like an initial application. Time the closing to that process.

Converting a house

The facility type you plan to license drives the life-safety requirements, so decide Type A or B before you price the renovation. HHSC offers optional plan review and expedited life safety inspections.

Owner-operators

Applicants complete HHSC's pre-survey training. After the life safety survey, only a small number of residents may be admitted until the health survey is complete, so plan for a ramp-up.

Investor-landlords

Leasing to a licensed operator works the same way as elsewhere: lenders read the lease and the operator, not the residents' fees.

Licensing & zoning

Income and documentation

Separate operating and property accounts make cash-flow qualification simpler, especially for operators running more than one Texas location.

Licensing and zoning diligence

We haven't confirmed a state statute that sets zoning for assisted living homes in Texas. Confirm zoning with the city or county before you go under contract.

Appraisal and special use

Type B life-safety upgrades can be significant and aren't always reflected in a residential appraisal.

Sources

Reviewed 2026-10-27. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Texas's regulators and local officials.

WA

Washington: Adult Family Home (AFH) financing

  • RegulatorDSHS
  • Small homes2 to 6 residents, up to 8 with approval
  • Buying an operating homeBuyer applies for its own license
Check options in Washington

Overview

Washington's Adult Family Homes are licensed by DSHS for two to six residents, or up to eight with state approval. The real estate is usually a single-family house.

Terminology and classifications

An Adult Family Home serves more than one and up to six unrelated adults, or up to eight with DSHS approval. DSHS indicates a home must be licensed for at least two years before applying to serve more than six.

How many residents can a Washington AFH serve?
Two to six, or up to eight with DSHS approval after the home has been licensed for a period of time.
Can I buy an operating AFH and keep the license?
No. The buyer needs a new license issued before the transfer.

Buying & converting

Buying an existing AFH

A change of ownership needs both a new license application and a new license, issued before the transfer. Selling 50% or more of the ownership interest counts as a change of ownership.

Converting a house

State law treats an AFH as a residential use for zoning, permitted in residential and commercial zones, including single-family. New homes need a passed local building inspection and floor plan, and DSHS inspects before licensing.

Owner-operators

AFH providers must meet experience and training requirements, including direct-care hours and administrator training. DSHS notes licensing can take a long time, so carrying costs belong in the plan.

Investor-landlords

Many Washington AFH providers lease their homes. If you're the landlord, the provider's license history and a written, long-term lease are what underwriting will lean on.

Licensing & zoning

Income and documentation

AFH revenue often includes Medicaid payments alongside private pay. For a provider qualifying on cash flow, consistent business deposits matter more than the bed count.

Licensing and zoning diligence

Even with state zoning protection, the home must meet local codes and fire rules that apply to a single-family residence. Confirm well, septic and egress issues before you buy.

Appraisal and special use

Because AFHs are a residential use by statute, they are typically appraised as single-family homes; care-specific improvements may not be fully valued.

Sources

Reviewed 2026-10-27. Licensing rules change; confirm current requirements with the agency. We finance the real estate; licensing decisions belong to Washington's regulators and local officials.

Don't see your state? Availability varies, so tell us where the property is. Check Your Options

Illustrations

How we'd think through your deal

Hypothetical examples, not actual clients or funded loans.

Hypothetical

Buying a single-family home to convert

A nurse with years of caregiving experience finds a five-bedroom ranch home and wants to open her own residential care home.

How we'd approach it

The challenge. The house isn't licensed and won't earn anything until renovation and licensing are done. Her W-2 income is solid, but her side business shows little on paper after write-offs.

Possible approaches

  • A purchase loan qualified on her income and assets rather than projected care revenue
  • Holding the property in an LLC and operating through a separate care company
  • Budgeting conversion costs and reserves outside the loan so licensing delays don't create pressure

Questions a lender needs answered

  • Is the home's layout, zoning and location realistic for licensing in her state?
  • How much cash will she have after closing and renovation?
  • Who will be the licensee and administrator?

Limitations. Some homes need more work than a purchase loan can account for. If the renovation is large, a short-term structure followed by a refinance may fit better, and that refinance needs its own approval.

Hypothetical

Purchasing an established care home

An operator who runs two homes wants to buy a third that's already licensed, staffed and mostly full.

How we'd approach it

The challenge. The seller's license usually doesn't transfer with the sale, and the business and the real estate are often priced together.

Possible approaches

  • Financing the real estate and, where possible, the business in the same deal
  • Using the operator's existing track record and statements to support qualification
  • Timing the closing with the state's change-of-ownership process

Questions a lender needs answered

  • How much of the price is real estate, and how much is the business?
  • What does the state require for a change of ownership, and how long does it take?
  • Are there survey or inspection issues the buyer would inherit?

Limitations. Whether the business can be financed depends on its records and the deal. Part of it may still need cash or seller financing.

Hypothetical

Buying a property to lease to an operator

An investor with a rental portfolio wants to own care home real estate without running the care business.

How we'd approach it

The challenge. A care use is unfamiliar to many investor lenders, and the rent has to be real, documented and paid by a qualified operator.

Possible approaches

  • An investor loan qualified on the lease to an unrelated, licensed operator
  • Comparing the lease rent with market rent so the numbers hold up in underwriting
  • Buying in an LLC with the operator's lease assigned to it

Questions a lender needs answered

  • Who is the operator, and how long have they run homes like this?
  • Is the lease long-term, written, and arm's-length?
  • Does the rent support the payment with room to spare?

Limitations. Resident fees aren't rent. If the investor also owns the operating company, the lease is related-party and may not qualify for some investor programs.

Hypothetical

Refinancing an existing care home

An owner-operator bought and converted a home two years ago on a higher-cost loan and now has steady occupancy.

How we'd approach it

The challenge. She wants a lower long-term cost and some equity for her next home, but her tax returns show heavy depreciation and write-offs.

Possible approaches

  • A cash-flow-based refinance using business bank statements
  • Documenting the operating company's cash flow cleanly and separately from the property
  • Planning the cash-out around the next acquisition

Questions a lender needs answered

  • How has the home performed, and is it documented?
  • What does it appraise for as a care home versus a house?
  • How long has she owned it?

Limitations. A refinance is a new approval. Value, guidelines and rates at that time decide the outcome, and some lenders require time on title before cash-out.

Knowledge center

Questions, answered

What investors and operators ask us most.

Getting started

How do I finance a residential assisted living home?

A common approach is a business-purpose real estate loan on the property, qualified either on their own cash flow and assets or on rent from a licensed operator.

The right structure depends on whether you'll operate the home yourself, lease it to an operator, or partner with one, plus your state's licensing rules and the property itself. That's why we settle the structure before you make an offer.

Can I buy a house and turn it into an adult care home?

Often, yes, as long as the house can realistically be licensed where it sits.

Zoning, fire and life-safety requirements, accessibility and the number of residents allowed all vary by state and city. Confirm those with the licensing agency and local officials before you buy; we build the financing around that plan.

Can I purchase before the home is licensed?

Yes. With our program, the home does not need to be licensed before closing.

You can close, complete the conversion and go through licensing afterward. Plan for the months before the home earns income, because the loan payment starts right away.

Can you finance the business, not just the real estate?

We may be able to.

When you buy an operating care home, part of the price is often the business itself: the residents, staff, contracts and goodwill. Depending on the deal and the business's records, we may be able to finance that along with the property or structure it separately. Tell us about the deal and we'll walk through it.

Can I live in the care home I buy?

Possibly, but it changes the loan.

Our financing is for business-purpose loans on investment and care properties. If you plan to live in the home, for example as a live-in licensee, the loan may need to be structured differently or may not qualify. Tell us up front so we can point you the right way.

Can I finance an existing care home?

Yes, the real estate of an operating care home can be financed, subject to eligibility.

In the states covered on this page, the license doesn't transfer with a sale, so the buyer goes through a change-of-ownership or new-license process. We may also be able to finance the business along with the real estate.

Qualifying

How much down payment is required?

It depends on how we structure the deal.

Whether you're buying the real estate alone or the business too, how you'll qualify, the property itself, and whether you'll operate the home or lease it all change the number. We'll give you a real answer once we see your scenario. Plan for reserves and conversion costs on top of the down payment.

Are tax returns required?

Not always.

Cash-flow-based options can qualify you on bank statements or profit and loss statements, and investor options can qualify on the property's lease. Some scenarios still call for returns. We'll tell you which documents apply after the first conversation.

Can self-employed operators use business cash flow to qualify?

Yes, in many cases.

Lenders look at consistent business deposits or a profit and loss statement instead of taxable income. Deposits need to be explainable, and the business needs enough history to show a pattern.

Can I qualify based on assets?

Sometimes. Asset-based qualification can work for borrowers with significant liquid or investment assets.

Qualifying on assets doesn't mean selling them. Eligible accounts, how they're counted and the minimums vary by program.

Does the property's care income count?

Not as rent.

Resident fees are the care business's revenue. They can matter when you qualify on the operating business's statements, but they're not rental income for an investor or DSCR loan. Rent from a licensed operator under a lease is treated differently.

Investment strategies

Can I use a DSCR loan for a care home?

Possibly, when the property is leased to a licensed operator and the rent supports the payment.

DSCR programs look at rent, not care revenue, and many treat a lease to your own operating company differently from an arm's-length lease. Eligibility varies by lender, so ask before you assume.

Can I lease the property to a licensed operator?

Yes. Owning the real estate and leasing it to an operator is a common structure.

Lenders look at the lease terms, the rent, and the operator's experience and license. A written, long-term, arm's-length lease is the cleanest version.

Can I buy in an LLC?

Yes. Business-purpose loans commonly close in an LLC or other entity.

Lenders typically still review the people behind the entity and may require personal guarantees. Talk with your attorney and CPA about how to set up the property and operating companies.

Can I refinance a care home later?

Yes, if the property and income qualify at that time.

A refinance is a new loan with a new approval. Documented income, value, time owned and guidelines then in place decide the outcome, so no future refinance is guaranteed.

Can I finance multiple properties?

Yes. Many owners grow one home at a time into a portfolio.

Each property is underwritten on its own, and lenders look at your total exposure and reserves. Your track record with the first homes helps with the next.

Property and licensing

How do appraisals work for care homes?

Most residential care homes are appraised as residential real estate, with the care-related features noted.

Upgrades like sprinklers, ramps and extra baths may not add dollar-for-dollar value, and comparable sales can be scarce. Business value is evaluated separately from the real estate.

Do zoning and licensing affect financing?

Yes.

If a home can't legally be used or licensed as planned, the lender's collateral and your business plan are both at risk. Several states have laws that treat small licensed homes as a residential use, but local rules, spacing requirements and HOA restrictions can still apply.

Can renovation costs be financed?

Sometimes.

Smaller improvements are often paid in cash after closing. Larger conversions may fit a short-term renovation loan followed by a refinance, which needs its own approval. Budget conservatively either way.

What makes a property ineligible?

Common reasons are condition, use and size.

Homes in poor condition, properties that can't be legally used as a care home, unusual rural or acreage properties, and large or purpose-built facilities that fall outside residential guidelines can all be harder to finance or need commercial financing.

Know your financing strategy before you make an offer.

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Renown Mortgage is a DBA of Kyber Mortgage Corporation, NMLS #2653540. Justice Roberts, Founder, NMLS #1269831Max Lloyd, CMPS®, Private Wealth Mortgage Banker, NMLS #2374416 (248) 826-1172 · [email protected]
Equal Housing Opportunity

This website is for informational purposes and is not a commitment to lend or an offer of credit. All loans are subject to credit approval, underwriting guidelines and property eligibility. Programs, rates, terms and availability are subject to change without notice and vary by state, property type and borrower.

Financing described on this page is for business-purpose loans on investment and residential care properties. Licensing, zoning and care regulations are set by each state and local jurisdiction; we are not a licensing authority and this page is not legal or tax advice.

Scenarios on this page are hypothetical illustrations, not actual transactions.

© 2026 Renown Mortgage. Page content reviewed 2026-10-27.