Loan Programs


Construction or Rehabilitation

Our direct HUD 242 program provides financing for acute care hospitals – including Critical Access Hospitals – for loans to finance new construction, expansion, modernization, equipment, and refinancing of existing debt. U.S. Government backing of financing results in AA/AAA credit rating enabling hospitals to obtain low interest rates.

To qualify:

  • Facility must be an acute care hospital (i.e., no more than 50% of patient days attributable to the following services: chronic convalescence and rest, drug and alcoholic, epileptic, nervous and mental, mental deficiency, and tuberculosis).
  • Mortgage cannot be insured if construction project is already under way.

There is no maximum loan amount; and properties are eligible for a 90% loan-to-value ratio (i.e., can borrow up to 90% of the estimated replacement cost of the project). The loan covers the construction period, plus a 25-year, self-amortizing, permanent loan all in one.

Creative Solutions

We are a direct lender, not a broker or intermediary. 

Each loan is underwritten by experienced healthcare professionals who understand both the challenges facing healthcare providers and potential market opportunities.

We realize that there are many financial terms and conditions, such as loan to values, debt coverage ratios, and prepayment issues that a borrower needs to fully understand prior to determining the best option. We invite you to call us, we will prepare a free financial analysis which clearly outlines all your options. Bedford Lending does not charge up-front or prorated fees, we only receive our mortgageable finance fee upon successful closing.


  • 25 Year Fixed Rate
  • Non-Recourse
  • Assumable
  • Declining Prepayment