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HUD Section 242: Hospital Mortgage Insurance Program

 
Catalog of Federal Domestic Assistance Number: 14.128
Sponsor
U.S. Department of Housing and Urban Development
Deadlines
Applications accepted on an ongoing basis
Contact

HUD Headquarters (Washington, DC) 202.708.0599 or 877.458.4342
New York City: 212.264.5080
Fort Worth: 817.978.5648
For more contact options, go to HUD's Contact Information page.

Purpose

Section 242 of the National Housing Act provides mortgage insurance for acute care hospital facilities ranging from large teaching institutions to small rural critical access hospitals.

The Federal Housing Administration (FHA) helps hospitals access affordable financing for capital projects. Uses may include new construction, refinancing, and modernization, remodeling, equipment, and expansion.

Eligibility

For complete eligibility requirements, see the federal regulations.

Geographic coverage
Nationwide
Amount of funding

Loan-to-value may not exceed 90%. Maximum loan term is 25 years. One-time fees total 0.8% of loan amount. Fixed annual premium is 0.5% of remaining balance. FHA insures 99% of the loan amount.

Application process

The first step of the application process is for HUD to perform a preliminary review of the hospital and the proposed project with information provided by the hospital and mortgage lender. Visit the How to Get Started webpage on the program website.

Tagged as
Capital funding, Hospitals and clinics



For complete information about funding programs, including your application status, please contact funders directly. Summaries are provided for your convenience only. RAC does not take part in application processes or monitor application status.