HUD Programs


Construction or Rehabilitation

The HUD 242 program provides mortgage insurance for acute care hospitals – including Critical Access Hospitals – for loans to finance new construction, expansion, modernization, equipment, and refinancing of existing debt. U.S. Government backing of financing results in AA/AAA credit rating enabling hospitals to obtain low interest rates.

To qualify:

  • Facility must be an acute care hospital (i.e., no more than 50% of patient days attributable to the following services: chronic convalescence and rest, drug and alcoholic, epileptic, nervous and mental, mental deficiency, and tuberculosis).
  • Mortgage cannot be insured if construction project is already under way.

There is no maximum loan amount; and properties are eligible for a 90% loan-to-value ratio (i.e., can borrow up to 90% of the estimated replacement cost of the project). The loan covers the construction period, plus 25-year, self-amortizing, permanent loan.

Creative Solutions

Bedford Lending is an independently-owned banking and financial advisory firm with a specialty focus on providing construction and permanent financing to hospital providers and facilities nationwide. As a direct FHA/HUD and USDA lender we offer the broadest range of hospital financing solutions available.

Our staff is comprised of senior healthcare professionals who have extensive experience in public finance, hospital credit analysis, health care consulting, mortgage banking, economics, and law. We start each process by assessing our client's financing needs and then prepare a financial analysis that clearly delineates all options.

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