What is the Section 242 Mortgage Insurance Program for hospitals?

The Section 242 program provides mortgage insurance for financing the new construction or rehabilitation of hospitals and is administered by the Office of Health Care Programs (OHP) within HUD. This program has nothing to do with home mortgages.

For more information about the hospital programs go to the following HUD website: https://www.hud.gov/federal_housing_administration/healthcare_facilities

Mortgagee Letter 04-08 is available at https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03392