HUD’s 232 and 242 Loan Programs Offer Financing to Healthcare Facilities
The U.S. Department of Housing and Urban Development, more commonly known as HUD, is a department of the executive branch of the U.S. government tasked with improving the accessibility of housing for all Americans. As part of their mission, HUD insures a variety of loans, including FHA mortgages for single family homes, as well as multifamily loans for apartment buildings and healthcare facilities.
HUD’s role in healthcare financing includes insuring mortgages under the HUD 232 loan program. This allows for the construction and significant rehabilitation of assisted living, skilled nursing, and memory care properties for senior citizens. HUD also insures mortgages under the HUD 232/223(f) program, which allows for the acquisition and refinancing of those same property types.
In comparison, the HUD 242 loan program is designed for financing hospitals, including acute care facilities, critical access hospitals, large urban teaching hospitals, and both non-profit, for-profit, and government-owned hospital facilities.