FHA 232 FHA 242

After Years of Waiting its HERE FHA 242 223F HOSPITAL REFINANCING

The Office of Hospital Facilities (OHF), a division of the U.S. Department of Housing and Urban Development (HUD), announced the issuance of a new final rule that revises the regulations governing the Federal Housing Administration’s (FHA) Section 242 Hospital Mortgage Insurance Program. This new rule implements FHA's authority to finance hospital acquisitions and to refinance the capital debt of hospitals that do not have FHA-insured mortgages, without requiring substantial construction or rehabilitation. The final rule will be officially published in the Federal Register on February 5, 2013. LINK
Call 773-259-7074 Chuck Kendall to refinance 
We work for you save money now before rates rise any more!!! 25 year fixed rate low 4% fixed 

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Cook County Health seeks early expansion of Medicaid

Cook County Health seeks early expansion of Medicaid

The Cook County Health and Hospitals System is seeking approval to add thousands of uninsured patients to the Medicaid rolls nearly two years early, a move that could generate millions of dollars in new revenue for the cash-strapped network.

Approval would mean that the public health system would be reimbursed for some of the roughly $550 million of annual free care it now provides. Cook County health system executives decline to say how much revenue they expect to gain. The system treats about 100,000 uninsured patients a year, though that includes people who are ineligible for Medicaid.

The additional revenue could reduce the annual subsidy — $252 million for 2012 — that county taxpayers pay to keep the health system afloat.

Pushing the application through is at the top of the health system’s “life or death” list for financial survival, said Warren Batts, chairman of the independent hospital board that oversees the health system.

The federal health care overhaul calls for a massive enlargement of the Medicaid program in 2014. The expansion is expected to create competition among health care facilities for Medicaid patients, potentially threatening the Cook County health system’s already weakened finances.

The county health system wants the new Medicaid eligibility rules to be applied to its patients later this year instead of waiting until 2014, when federal health care reform begins. Such a move would give the public hospital system a competitive head start on serving the new Medicaid patients.

“When 2014 comes, almost all the people that we would treat would have Medicaid available to them, and unless we perform with a very good patient focus, we’ll end up with a fairly sizable operation with even greater need for a subsidy because we won’t have offsetting revenues coming from regular Medicaid patients,” Mr. Batts said.

The Obama administration already has approved an early start to the new Medicaid rules in four states, according to Menlo Park, Calif.-based Kaiser Family Foundation, which specializes in health care policy.

FHA 223(f) FHA 221(d)(4) FHA 232 LEAN FHA 242

FHA 242 Hospital and Healthcare loan Program Link:

 FHA 242

BABS Rates for FHA 242 - 25 year fixed rate self amortizing loan

Currently Rates on BABS loans are running about 5.50% to 5.75% before the 35% rebate from the BABS (Build America Bonds), this results in an effective fixed rate for 25 years of 3.65% plus MIP for a twenty five year loan.  The FHA process puts the bonds in use during construction draws to generate the rebate from the government during construction.  FHA is allowing GNMA AAA insurance for BABS FHA 242 Bonds which means that the borrower does not need a 10% interest reserve.  FHA 242 Mortgage insurance can be used to credit enhancee a combination of BABS, Tax-Exempt and/or Taxable Bonds to cover the borrowers needs and to fund  issuance costs.

The fixed rate program requires NO - DERIVATIVES or HEDGES of bank credit enhancement programs offered with high annual credit enhancement cost for low floaters.

FHA 242 New Construction and Build America Bonds

Municipal Hospitals may now use Build America Bonds (BABS) for new construction and rehab of hospitals.

The first FHA 242 BABS deal has been closed and with the 35% interest rate rebate from the BABS bonds the hospital was able to borrow at an effective rate under 4% fixed for 25 years.

Contact Kendall Realty Advisors at (847) 903-7578 for more information.