FHA 242/223(f) Hospital Refinance

Since 1968 FHA Section 242 Hospital finance has provided for billions of dollars of mortgage financing for Hospitals. Up to this time the FHA 242 Mortgage Insurance for Hospitals has been limited to new construction and substantial rehabilitation properties. Due to the Credit Crisis many banks and private lenders are unable to lend. With no private lending alternatives available FHA quickly reacted.

On July 2, 2009, HUD Secretary Shaun Donavon announced an exciting new program, the FHA Section 242-223(f) Hospital Refinance Program. This program allows thousands of Hospital to refinance tax-exempt municipal bonds and taxable debt using FHA 242/223(f) Mortgage Insurance for replacement Credit Enhancement.

FHA 242-223(f) was created to help finance viable hospitals that have been impacted by the credit crisis. Eligible borrowers must show a 1% increase in interest rates since January 1, 2008 or prove that such an increase is imminent.

For more information go to http://www.kendallrealtyadvisors.com/FHA242FHA223F.html

UPDATE: FHA To Start Insuring Hospital Refinance Loans

"This refinance program will help hospitals struggling with skyrocketing interest rates and limited credit options," HUD Secretary Shaun Donovan said. "The savings provided through FHA refinancing should also help hospitals decrease the cost of health care, which is a major priority of the Obama administration," Donovan added. WSJLINK

FHA 242/223(f) Rules - At HUD’s discretion there may be no requirement for involvement of a certified accounting firm

Refinancing is based on solid historical financial statements. Since most hospitals keep detailed audited statements the refinancing process is based on the prior three years statements.

The financial statements and market study may be waived at HUD's discretion if the documentation presents accurate accounting of prior years operation and market demand.

In these cases the processing can start upon invitation to process from FHA.

Contact Scott at (847) 903-7578 for a list of preliminary documentation.