Seniors-Housing Lender Praises HUD Funding Program For Hospitals

Posted by Orb Staff on August 03, 2009 No Comments
Categories : Commercial Mortgage

deral Housing Administration's (FHA) decision to extend a popular refinance program to borrowers who qualify under the U.S. Department of Housing and Urban Development's (HUD) Section 242 hospital funding program is being well received by hospital owners, according to Jeffrey A. Davis, chairman of [link=http://www.cambridgecap.com/][u]Cambridge Realty Capital Cos.[/u][/link], a national lender in the seniors housing and healthcare sectors. ‘The decision means hospital owners can refinance an existing mortgage loan without some restrictive conditions that had applied in the past,’ Davis says. "Gone is the need to include new construction or renovation as a precondition for refinancing under the HUD 242 program." He says the FHA's 223(f) refinance program was successful when it was initiated in 1974 for nursing homes, and "there's every reason to believe the program will prove to be equally popular with hospital owners, as well." To reduce the time it takes HUD to review an application, issue a commitment and move to closing, a new process based on lan management concepts was introduced. Loans are now filed electronically, and they feature fewer exhibits and require "conventional" market-based appraisals instead of HUD-specific reports. "By expanding FHA's Hospital Mortgage Insurance program to allow for refinancing of existing debt without conditioning such refinancing on new construction or renovation, FHA believes it contributes to alleviating financial stress on hospitals and maintaining the availability of hospitals in many communities," Davis adds. SOURCE: [link=http://www.cambridgecap.com/]Cambridge Realty Capital Companies

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