Section 232 is an FHA loan product that provides mortgage insurance for residential care facilities. Residential healthcare facilities such as nursing homes, assisted living facilities, and board and care facilities are all examples of this type of housing. Section 232 may be used to finance the purchase, refinance, new construction, or substantial rehabilitation of a project. A combination of residential healthcare uses is acceptable - e.g. refinance of a nursing home coupled with new construction of an assisted living facility. The benefit to the lender is that the loan is insured by FHA. The benefit to the borrower is that the loan is at a fixed interest rate, often lower than conventional rates, and is non-recourse.