4.  Pre-Application Meeting

If the hospital passes the preliminary review, the lender and representatives of the hospital are invited to FHA headquarters for a pre-application meeting.

The pre-application meeting is an opportunity for the hospital and lender to summarize the proposed project, for FHA to describe the application process, and for issues that could affect the eligibility or underwriting of the proposed loan to be identified and discussed. Following the meeting, FHA may (1) invite the hospital to submit an application or (2) identify issues that must be resolved before a full application will be accepted for processing.

5.  Application Submission

Should the hospital have a satisfactory pre-application meeting, the mortgage lender and hospital may develop an application according to FHA guidelines. For information on the contents of an application, please refer to the Applicant's Guide. For critical access hospitals, please refer to the Applicant's Guide for Critical Access Hospitals.

6.  Underwriting

Once the application is complete, the underwriting process begins. A client service team composed of staff members from FHA conducts the underwriting process.

7.  Commitment

If the hospital and project meet FHA's requirements and the FHA Commissioner approves the application, a commitment for mortgage insurance is issued.

8.  Closing

Following commitment, FHA counsel assists the mortgage lender, hospital, and their legal representatives to close the loan.

9.  Construction

During construction, HUD staff members monitor and approve loan draws and perform monthly site visits.

10. Final Endorsement

Once construction is completed and the final draw has been made, the final mortgage amount is established and amortization begins.

Return to Steps 1-3