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HUD Section 242

HUD Section 242

FHA mortgage insurance has a variety of benefits including credit enhancements and can provide attractive terms. Listed below are some of the features provided by FHA mortgage insurance for hospitals.

FHA Credit Enhancement

Government backing enhances your hospitals credit worthiness. Your Resulting AA to AAA Credit Rating will provide you with a better interest rate. With a lower interest rate you have more money to meet your community needs.

Eligility Requirements

Only private, nonprofit owners of Section 202 direct loan projects with or without Section 8 rental assistance; Section 202 capital advance projects receiving rental assistance under their Project Rental Assistance contract (PRAC); Section 515 rural housing projects receiving Section 8 rental assistance; projects subsidized with Section 221(d)(3) below-market interest mortgage; projects assisted under Section 236 of the National Housing Act; and other projects receiving Section 8 project-based rental assistance that are designated primarily for occupancy by the elderly are eligible. These projects must have had closing on or before January 1, 1999.

Hospitals That Choose FHA:

  • Are Nationwide
  • For-Profit, Not-for-Profit, and Government-Owned Hospitals
  • Acute Care Hospitals
  • Large Urban Teaching Hospitals
  • Hospitals in Systems
  • Critical Access Hospitals

FHA-Insured Loan Uses:

  • Remodeling
  • Expansion
  • Modernization
  • Equipment
  • Refinancing
  • Acquisitions

Terms:

  • No maximum Loan Amount
  • LTV up to 90%
  • No Cash Required At Closing with Sufficient Equity
  • FHA insures 99% of the loan amount.

FHA Multifamily Mortgages

Multifamily Loans
Cooperative Housing - Section 213 Existing Multifamily Rental Housing - Sections 207/223(F)
Housing Finance Agency Risk-Sharing - Section 542(c) Manufactured Housing - Section 207
Rental & Cooperative Housing - 221(d)(4) Rental Housing - Section 207
Rental Housing for Urban Renewal and Concentrated Development Areas - Section 220 Risk-Sharing Program - Qualified Participating Entities (QPE) - Section 542(b)
Senior Housing - Section 231 Supplemental Multifamily Loans - Section 241

FHA Special Needs Housing Loans

FHA Special Needs Housing Mortgages
Assisted Living Conversion Program (ALCP) Demonstration Program for Elderly Housing for Intergenerational Families
Emergency Capital Repair Program (ECRP) Supportive Housing for the Elderly Program - Section 202
Supportive Housing for Persons with Disabilities - Section 811

FHA Health Care Mortgages

FHA Health Care Mortgages
Hospital Facilities - Section 242 Residential Care Facilities - Section 232

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