Knox Community Hospital | Mt. Vernon, OH

Peace of Mind

Knox Community Hospital | Mt. Vernon, OH

HUD FHA 242 Hospital Loans

As a HUD-licensed FHA mortgage bank, InnoVative Capital originates low-interest, insured capital project loans through the FHA 242 Mortgage Insurance program. Our clients have included nonprofit, government-owned, and for-profit hospitals, from critical access facilities to large urban teaching hospitals.

HUD’s Office of Hospital Facilities administers various FHA programs, approving projects like hospital expansions, remodels, equipment purchases, and medical office buildings and clinics.

InnoVative Capital’s CFO HELPER® was exclusively developed to ensure that clients’ applications exceed FHA underwriting requirements, speeding up HUD FHA mortgage insurance commitments.

FHA Mortgage Banking Process

Pre-Assessment

InnoVative Capital determines borrower eligibility, conducts due diligence with CFO HELPER® analytics, and engages in initial HUD discussions.

CFO HELPER® evaluates financial position, determines debt capacity, optimizes project budgets, calculates capital contributions, structures liquidity reserves, and identifies supplemental revenue needs for the Pre-Application phase.

Pre-Application

Leveraging our CFO HELPER® findings, InnoVative Capital identifies, negotiates, and structures required supplemental revenue, including tax support, grants, partnerships, and service-line enhancements.

As an FHA mortgage banker, InnoVative Capital:

  • Directs HUD Architecture meetings.
  • Manages the feasibility process
  • Submits the Pre-Application.
  • Leads HUD finance meetings.
  • Guides the client’s project team through HUD’s environmental review

Application and Loan Underwriting

After successful HUD meetings and Pre-Application approval, InnoVative Capital is invited to submit its proprietary HUD FHA 242 Mortgage Insurance Application. We handle the development and submission of all financial and project-related reports and negotiate HUD terms and conditions.

Financing and Loan Closing

Upon HUD project loan approval and the delivery of the HUD FHA 242 Mortgage Insurance Commitment to InnoVative Capital, we assess the optimal funding source for the mortgage loan. This may include municipal bonds or Ginnie Mae collateralized mortgage securities, which thereafter, InnoVative Capital closes the loan.

Throughout construction and close-out, we oversee cost-certification, loan monitoring, and covenant compliance.

FHA 242 PROGRAM LOANS

FHA 242 provides hospitals with an all-in-one construction to permanent financing tool for renovation, replacement, and construction with refinancing.

FHA 242 insured mortgage loans are funded with Ginnie Mae Collateralized Mortgage Loans, Ginnie Mae Taxable Bonds, or FHA Mortgage-Insured Tax-Exempt Bonds. The U.S. government enhances each borrower’s credit quality, enabling even non-rated hospitals to obtain low-interest rate loans.

  • Terms & Conditions
    • No maximum loan amount, and not subject to any annual federal funding limits.
    • Long-term fixed rate loans with 25-year maturities plus construction term.
    • All-in-one construction and permanent financing.
    • 25-year amortization.
    • Loans fund up to 100% of project costs and cashless loan closings are possible.

  • Additional HUD FHA Healthcare Financing Solutions
    • HUD FHA Section 241 Mortgage Insured Secondary Loans
    • HUD FHA 242/223(f) Mortgage Insured Debt Refinancing Loans
    • HUD FHA 242 223 a-7 Refinancing of Outstanding FHA 242 Loans

Let’s Discuss Your Project and Funding Needs

We can help from start to finish or advise on any phase of your project. Get started today.
TEL: 610-543-2490

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