Medical Property Loans
Smart financing for medical offices and healthcare facilities
What are medical property loans?
Medical property loans are secured by properties used for medical or healthcare services. These include medical office buildings, clinics, outpatient centers, dental offices, and specialty healthcare facilities. With commercial loans for healthcare properties, lenders focus on the property’s income, tenant stability, lease terms, location, and regulatory compliance. These loans can be used for property purchases, refinancing, cash-out transactions, and renovations or expansions.
What borrowers typically qualify for
Typical LTVs
60%–75% LTV required for stabilized medical properties. Properties with long-term medical tenants may qualify for higher leverage.
DSCR requirements
We generally look for a DSCR of 1.20–1.35, depending on tenant strength and property performance.
Credit guidelines
Strong borrowers have 680+ credit scores. Lower scores may qualify with good equity, cash flow, or leases.
Borrower qualifications
Borrowers with healthcare real estate experience, stability, strong reserves, and good management can get better terms.
What makes medical properties unique to us
Healthcare tenant stability
Medical tenants sign long-term leases and invest heavily in buildouts, which can support stronger loan terms.
Regulatory considerations
Healthcare properties must comply with licensing, zoning, and regulations. We review all factors early to avoid delays.
Specialized buildouts
Medical offices have exam rooms, surgical suites, imaging areas, and systems that impact valuation and re-tenanting.
Location & accessibility
Nearby hospitals, homes, parking, and public access strongly affect property performance and financing.
Documents required for Medical Property Loans
Executive summary or loan request package
Purchase agreement (for acquisitions)
Current rent roll and copies of medical leases
Last 2–3 years of property operating statements
Tenant license information (when applicable)
Market rent comparables for medical office space
Property survey and environmental Phase I
Borrower's personal and business tax returns (2–3 years)
Entity documents (LLC operating agreement, K-1s, ID verification)
Proof of insurance and property condition reports
Construction or renovation budget (if applicable)
What loan terms can borrowers expect?
Interest rates
Rates depend on the market conditions. Rize Mortgage helps you secure competitive healthcare property financing.
Amortization
Most healthcare property mortgages offer 20–30 year amortization, with refinance options extending up to 30 years.
Term length
Loan terms typically range from 5 to 10+ years, depending on the loan program and property stability.
Recourse vs. non-recourse
Many healthcare property loans qualify for non-recourse structures when supported by strong tenancy.
Prepayment
Fixed-rate loans may include yield maintenance, defeasance, or step-down prepayment penalties.
Closing timeline
Most medical real estate loans close in 30–60 days, though specialized properties may take longer.
Eligible vs ineligible properties
Medical office buildings (MOBs)
Outpatient clinics and specialty care centers
Dental and orthodontic offices
Healthcare-related mixed-use properties
Properties lacking required healthcare zoning or licensing
Facilities with unresolved regulatory or compliance issues
Buildings with major structural or accessibility problems
Title issues that cannot be resolved
Simple step-by-step loan process
FAQ (Frequently Asked Questions)
How much down payment is required for a medical property?
Most medical property loans require 25%–35% equity, depending on tenant type, lease term, and property condition.
Are medical office buildings easier to finance than standard offices?
Yes, medical office buildings are easier to finance. Medical tenants tend to have longer leases and lower turnover, which can support stronger loan terms.
Do healthcare property loans require personal guarantees?
Some healthcare property loans require personal guarantees. However, non-recourse options are available for stabilized properties with strong medical tenants.
Can I finance tenant improvements or renovations?
Yes. Many programs allow financing for medical build-outs and renovations as part of the loan.
How long does the loan process take?
Most deals close in 30–60 days, though specialized medical facilities may take longer due to compliance review.
Ready to start your medical property loan?
At Rize Commercial, we help investors and healthcare professionals secure the right medical real estate loans with clarity and confidence.