The Federal Housing Administration has announced that it has inked a deal to insure a $756 million mortgage to allow Capital Health of Trenton, NJ to construct a new 223-bed hospital nearby.
While hospitals have been struggling to borrow on reasonable terms, this loan was more affordable than most since it was backed by the FHA. By insuring the loan, FHA saved the hospital about $538 million in interest expense over the 25 years of the loan.
Perhaps this program will allow yet another means for the hospital industry's economic freeze to begin thawing. Capital Health was granted the loan under the FHA's Section 242 Mortgage Insurance Program for Hospitals, which provides HUD-insured mortgages through private lending firms to finance construction or renovation of acute care facilities.
To learn more about this program:
- read this HFMA News piece
Related Articles:
FHA financing program seeks higher profile
Second hospital in a month closes on HUD financing through Lancaster Pollard