HUD Section 242: Hospital Mortgage Insurance Program
HUD Headquarters (Washington, DC) 202.708.0599 or
New York City: 212.264.5080
Fort Worth: 817.978.5648
For more contact options, go to HUD's Contact Information page.
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.
For complete eligibility requirements, see the federal regulations.
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.
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.
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.