Attorney Says Today's Conditions Make FHA Health Care Financing More Attractive

Many owners of health care facilities are finding that projects that could have gotten financing directly from commercial banks are unable to access that source now, according to an attorney who is an expert in the field. Andrea C. Barach, a partner in the Health Care Practice Group at Bradley Arant Boult Cummings LLP, Nashville, said this is due to tightened credit requirements, increased cost and/or inability to access funds through interbank markets. Ms. Barach, who advises health care facilities regarding financing options, said this has led those who need credit to reconsider applying for Federal Housing Administration-insured loans. "The terms are extremely attractive, and in many cases the FHA financing will be the only viable option for many borrowers. FHA financing offers a way for owners to control costs and maintain a predictable level of debt service," she said. While the FHA program still has its heavy red tape and compliance requirements, it has been streamlined. "The new Lean processing system should make financing more attractive by reducing processing time and bureaucratic red tape," said Ms. Barach, who added borrowers should work with lenders who have experience doing the Section 232 program.