The Federal Housing Administration announced that it has finalized a deal to insure a $756 million mortgage, the largest single transaction in its 75-year history. The deal will allow Capital Health of Trenton, NJ, to construct a new 223-bed hospital in Hopewell Township to replace the existing Mercer Medical Center. By insuring the mortgage loan, FHA helped enable a lower cost financing, saving the hospital an estimated $538 million in interest expense over the 25-year life of the loan. FHA's Section 242 Mortgage Insurance Program for Hospitals provides HUD-insured mortgages made by private lending institutions to finance construction or renovation of acute care hospitals.
