Introduction
- Since its inception in 1968 there have been 418 commitments issued totaling $18.5 billion
- OHF issues an average of 10 commitments per year
- Average loan size is approximately $68.5 million per project
- New regulations implementing the 242/223(f) program became effective March 2013 giving statutory authority to refinance existing debt of hospitals and finance hospital acquisitions
Current Portfolio
- 85 hospitals presently in portfolio with 110 active loans
- $8.6 billion in unpaid principal balances
- Facilities located in 31 states and Puerto Rico
Insurance Commitment Types
- Section 242 – For Hospital construction, renovation and refinancing
- Section 241 – For supplemental Hospital loans after a 242 is completed
- Section 223(a)7 – For refinancing Hospital debt already financed under Section 242 and 241
- Section 223(f) – For refinancing capital debt or hospital acquisitions for hospitals not yet in the FHA Program and where there is no construction component
Attractive Features of the Programs
- No maximum loan amount
- Non-recourse to the borrower
- Loan-to-value up to 90%
- For Profit, Not-for-Profit and public/government hospitals
- Fixed rate debt with a loan term up to 25 years
- No Debt Service Reserve Fund when utilizing GNMA taxable securities
- No Negative Arbitrage during construction when utilizing GNMA taxable securities
- Attractive interest rates at the AA/AAA level
Processing Time and Requirements
- Selection of Mortgage Banker required to act on hospitals behalf
- Pre-Application Submission – Completeness Review – 10 days
- Formal Application developed including Financial Feasibility Study when required – 90 days
- Formal Application Submission – Completeness Review – 10 days
- Formal Application Review – 120 days (223(f) 90 days)
AMS Health Care Mortgage Corporation
- More than 75 years collective experience in the industry
- Responsible for the largest FHA loans approved to date
- Skilled and experienced project team leader
