FHA & HUD Healthcare

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fha & hud healthcare

Crown Care Services offers guidance through Crown Financial Services, (CFS) for a variety of programs administered by the Federal Housing Administration (FHA) under the supervision of the U.S. Department of Housing and Urban Development (HUD).

Under FHA/HUD 232 healthcare programs, clients can obtain funds for the acquisition, refinance, new construction, or substantial rehabilitation of healthcare facilities, including skilled nursing facilities, assisted living facilities, and hospitals. These programs have many advantages for the borrower:

Mortgagor assumes no personal liability.

Up to 40 years (plus the construction period) for loans insured under the 232 program, and up to 35 years for existing properties insured under the 223(f) program.

LTVs of 80%; 85% for non-profit mortgagors.

1.45x Debt Service Coverage.

No income tenancy requirements.

Interest rates are fixed for the entire loan term at the initial closing.

Most loans are securitized as Ginnie Mae MBS, which provides for a “AAA” rating.

Most operating and performance covenants typically found in conventional loan agreements are eliminated (i.e., no lease-up requirements, annual debt service coverage ratios, net worth benchmarks).

FHA can be used as a credit enhancement to taxable or tax-exempt fixed rate bonds.


The Office of Hospital Facilities (OHF) manages the Section 242 program, which provides mortgage insurance for acute care hospital facilities ranging from large teaching institutions to small rural critical access hospitals…