HUD 242/223(f) Loan - Acquisition or Refinance of Hospitals

Eligible Properties | Licensed acute care & critical access hospitals (at least 50% of patient days must be acute care days). |
Eligible Borrowers | For-profit, non-profit, and public entities. |
Location | Nationwide. |
Loan Amount | No minimum/no maximum (subject to General Loan Parameters). |
General Loan Parameters | Maximum loan cannot exceed 90% Loan to Value. |
Interest Rate | Fixed-rate, subject to market conditions at the time of rate lock. |
Term & Amortization | Up to 25 years and fully amortizing. |
Liability | Non-recourse. |
Mortgage Insurance Premium | 1% at closing, |
Assumability | Fully assumable, subject to HUD approval. |
Prepayment | Typically loans are prohibited from prepayment for the 1st year, then have a 9% penalty declining 1% each year thereafter until 0%. Alternative lockout and prepayment structures are available. |
Professional Liability Insurance | HUD requires a minimum coverage of $1 million per occurrence and $3 million aggregate. Waivers may be granted in cases where premiums are high and claims history is clean. |
Other |
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