HUD Section 242: Hospital Mortgage Insurance Program
Catalog of Federal Domestic Assistance Number:
Federal Housing Administration, U.S. Department of Housing and Urban Development
Applications accepted on an ongoing basis
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.
Amount of funding
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
How to Get Started page to review the 10 step process
for submitting and completing a HUD Section 242 project.
Capital funding · Critical Access Hospitals · Hospitals · Sole Community Hospitals
U.S. Department of Housing and Urban Development,
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.