Mortgage Insurance Hospitals

(Section 242 - Mortgage Insurance for Hospitals)
CFDA 14.128 Active Loan Guarantee

Program Funding

Annual program obligations reported to SAM.gov.

Latest annual funding (estimated)
$739M FY2026
$60M
FY24
$59M
FY25
$739M
FY26*
* estimated

Program Objective

To facilitate the affordable financing of hospitals for the care and treatment of persons who are acutely ill or who otherwise require medical care and related services of the kind customarily furnished only or most effectively by hospitals.

Eligibility

Eligible Applicants

  • Municipality/Township Government
  • County Government
  • Nonprofit Organization
  • For-Profit Organization

Qualified applicants can be either profit or not-for-profit hospitals licensed or regulated by the State, municipality, or other political subdivision. At least 50 percent of the care must be for general acute patients as of June 2012.

Beneficiaries

  • Unrestricted by Individual Type

Persons needing the services of these hospitals benefit by using the modernized facilities supported by the insured mortgages.

How to Apply

Award Procedure

The Federal Housing Commissioner makes final decisions to approve, hold, or reject individual applications.

Decision Timeline

  • Approval: From 60 to 90 days

Processing time depends upon the complexity of the proposal and the degree of preparation by the sponsor. 60 days is the goal for non-complicated applications.

Program details & compliance

Description

Provides mortgage insurance for acute care hospital facilities ranging from large teaching institutions to small rural critical access hospitals. Also supports underwriting and asset management of FHA -insured hospital loans.

Mission Categories

Primary: Property and Mortgage Insurance

Use of Funds

Allowed Uses

HUD insures lenders against loss on mortgages. The loans may be used to finance the construction, modernization, equipment, or refinancing of acute care hospitals.

Required Documentation

Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee and submitted with the application. A Certificate of Need from the appropriate State agency is needed if that State has a Certificate of Need process.

Reporting & Compliance

Audit Required
Yes — Annual
Records Retention
32 years

Applicable 2 CFR 200 Subparts

  • Subpart F — Audit Requirements

Contacts

Dunkley, Cherokee M.,
( 202 ) 708-0599 Ext. 6723
451 7th Street, SW Rm 6264 , Washington, DC 20410
ALter: Muhammad, Aisha J.
202-402-4593
451 7th Street SW,, Washington, DC 20411
Data from SAM.gov Federal Assistance Listings. Source published: 2026-03-26. Spec v2.0. Last synced: 2026-05-30 03:38:28.