HUD Section 242: Hospital Mortgage Insurance Program
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 remodeling, expansion, modernization, equipment, refinancing, and acquisition.
Use the pre-screening tool to determine eligibility.
Loan terms include:
- No maximum loan amount
- Loan-to-value up to 90%
- No cash required at closing with sufficient equity
- FHA insures 99% of loan amount
Flexible funding options include:
- Taxable bonds
- Tax-exempt bonds
- Ginnie Mae securities
- Whole loan placements
Visit the How to Get Started page to review the 10 step process for submitting and completing a HUD Section 242 project.
For complete information about funding programs, including your application status, please contact funders directly. Summaries are provided for your convenience only. RHIhub does not take part in application processes or monitor application status.