FHA mortgages are not only being enhanced to make them more accessible and affordable to home buyers, they are also structured to serve the real estate needs of other groups. FHA mortgage rates have never been lower or accessible to so many diverse groups. For example, the Federal Housing Administration (FHA), working through the Department of Housing and Urban Development, has a special program for providing insured mortgage financing for hospitals and critical care facilities. Applicants for these mortgages can now obtain financing for projects for which they qualify. Many have been cut off from the credit markets due to the collapse of the bond insurance business and other factors, according to a report carried in National Mortgage News. "The FHA's Section 242 mortgage insurance program is designed to support hospital projects by helping to reduce their cost of capital," said Steven Hunt, a senior account executive for HUD. The program focuses on hospital construction but can be used for other purposes. It's traditionally used mostly at urban hospitals, and is now available in 43 states. The program has been ignored by many hospitals in the past because the HUD standards have been perceived to be too onerous. And municipal bond deals associated with the program have been few in number and relatively small in size. But now the program is gaining more attention and considered to be more viable in today's market. Under the program, a qualifying hospital can get an FHA-insured mortgage that can be securitized as a Ginnie Mae loan that is guaranteed by the federal government and purchased by an investor. Most current participants in the program are critical care facilities in urban and rural areas, it was reported. During fiscal 2009, HUD processed preliminary reviews of 43 applications for the program. Twenty-three of these applications did not qualify successfully. However, HUD expects 2010 to be a record year. Jim Woodard writes a nationally syndicated column and freelance features on real estate and mortgage news and trends. Email: storyjim@aol.com
* Credit score of 600 or greater required to continue
By clicking "Send my Application" button, I (each of you if more than one) agree and accept the Terms of Service. And you grand permission for up to 4 of our Premier Partners to contact you by phone even if you are on the Do Not Call Registry. SecureRights collects and transfers your information to complete your request. By submitting your request you agree to SecureRights Privacy Policy