InnovatiVe Capital

Financing HOSPITALS. Dedicated to CLIENTS. Committed to COMMUNITIES
 
$31,000,000
FHA 242 Mortgage Insured Ginnie Mae
RZED Bonds
Critical Access Hospital Modernization Project
InnoVative Capital's Role:
FHA Mortgage Banker and Financial Advisor
Effingham County Hospital Authority
Springfield, GA
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HUD/FHA 242
Services
Products
USDA Loans
HUD/FHA 242 Mortgage Insurance
FHA 242 mortgage insurance can improve access to capital and lower borrowing rates for hospitals seeking debt refinancing and project financing.

Overview
Established in 1968, HUD provides FHA Section 242 mortgage insurance to urgently-needed hospitals to facilitate affordable loans for nonprofit, government-owned, and for-profit borrowers. FHA Section 242 mortgage insurance credit enhances low-interest loans to new or existing hospitals for major capital projects, including: expansion, replacement, remodeling, and equipment purchases, as well as debt refinancings.

FHA 242 mortgage insured loans have funded the long-term borrowing needs of hospitals ranging from 15-bed critical access hospitals to 1,000-bed teaching facilities. Geographically diversified, HUD has issued FHA 242 mortgage insurance commitments across the United States in rural and urban settings.

Advantages of FHA 242:

Attractive Loan Terms
No maximum loan amount
25-year amortization with fixed interest rates
Upfront costs of issuance may be capitalized in the mortgage loan
Maximum Leverage with Minimal Cash Outlay
HUD underwrites at a loan to value of 90%
Project loans can fund up to 100% of project costs
Cashless loan closings are possible
Multiple Funding Options
Ginnie Mae collateralized mortgage loans
Ginnie Mae collateralized taxable bonds
FHA 242 mortgage insured tax-exempt bonds
FHA 242 Credit Enhancement
Full faith and credit of the U.S. backs FHA 242 insured mortgage loans and guarantees each hospital reimbursement obligation
FHA 242 mortgage insured loans may achieve ratings of AA or AAA
FHA 242 mortgage insured loans are rated AA or AAA with Ginnie Mae securitization
With FHA 242, non-rated and low-rated hospitals can access long-term loans at interest rates unattainable elsewhere for comparable credits
Lower interest rates improve financial feasibility and debt capacity
Fair Underwriting Parameters and Professional Program Administration Promote a Diverse FHA Loan Portfolio
No requirement for hospital credit rating
Industry-friendly financial covenants
FHA 242 is not subject to federal or state funding caps
Centralized loan underwriting in Washington, D.C., fosters universal lending practices

Since 2000, InnoVative Capital has been at the forefront of programmatic changes involving the substance and application of the FHA 242 Program. Our results support not only our clients, but the future of the program itself.

Develop, Structure
& Finance
We manage the entire process
Client Testimonial:
“InnoVative Capital developed Effingham Hospital’s project financing on its own initiative and then approached our CEO and CFO, with a proposal that they could finance a $30 million hospital modernization project using FHA 242 mortgage insurance. With the full support of our board, as our financial advisor, their strategic planning led our team of consultants, set our capital budget, and worked through an arduous county approval process. As our mortgage banker, they structured our record-low 3.63% Build America Bond financing. Their community outreach educated our board and County Commissioners and led to the passage of a County tax. Throughout the FHA underwriting process, InnoVative Capital gave us confidence we would receive HUD’s approval. This outcome is very satisfying for our hospital and the people of Effingham County.”

Richard R. Rafter | Chairman
Effingham Hospital Authority

 
 
Related Topics
View HUD/FHA 242 Services
View HUD/FHA 242 Products
Request More Information
HUD/FHA 242 Term Sheets
InnoVative Capital
Funding Delivery System
®
 
 
 
OTHERS PROMISE. WE DELIVER.
$40,500,000
  FHA 223 a-7 Insured Ginnie Mae Loan
  FHA 242 Debt Refinancing
  Morehead Memorial Hospital
  Eden, NC
  InnoVative Capital's Role:
  FHA Mortgage Banker
  [ case study ]
 
  Joint Management & Lease Agreement
  Community Hospital Affiliation
  Emanuel Medical Center
  Swainsboro, GA
  InnoVative Capital's Role:
  Financial Advisor
  [ case study ]
$85,000,000
  FHA 242 Insured Ginnie Mae Loan
  Replacement Community Hospital
  Meadows Regional Medical Center
  Vidalia, GA
  InnoVative Capital's Role:
  FHA Mortgage Banker and Financial Advisor
  [ case study ]
$40,000,000
  FHA 242 Insured Ginnie Mae Loan
  Replacement Critical Access Hospital
  The Memorial Hospital
  Craig, CO
  InnoVative Capital's Role:
  FHA Mortgage Banker
  [ case study ]
$46,000,000
  FHA 242 Mortgage Insured
Tax-Exempt Bonds
  Replacement District Hospital
  Matagorda Regional Medical Center
  Bay City, TX
  InnoVative Capital's Role:
  FHA Mortgage Banker and Financial Advisor
  [ case study ]
$18,500,000
  FHA 242 Insured Ginnie Mae Loan
  Replacement Critical Access Hospital
  Shoshone Medical Center
  Kellogg, ID
  InnoVative Capital's Role:
  FHA Mortgage Banker
  [ case study ]
$6,500,000
  FHA 241 Insured Ginnie Mae Loan
  Skilled Nursing Facility Renovation
  Shorefront Geriatric Center
  Brooklyn, NY
  InnoVative Capital's Role:
  FHA Mortgage Banker
  [ case study ]
$29,000,000
  FHA 242 Insured Ginnie Mae Loan
  Replacement Critical Access Hospital
  North Valley Hospital
  Whitefish, MT
  InnoVative Capital's Role:
  FHA Mortgage Banker
  [ case study ]
$31,000,000
  FHA 242 Mortgage Insured
Ginnie Mae RZED Bonds
  Critical Access Hospital Modernization Project
  Effingham County Hospital Authority
  Springfield, GA
  InnoVative Capital's Role:
  FHA Mortgage Banker and Financial Advisor
  [ case study ]
$24,000,000
  Hospital Revenue Bonds
  Community Hospital
Renovation and Expansion
  Ohio Valley General Hospital
  McKees Rocks, PA
  InnoVative Capital's Role:
  Financial Advisor
  [ case study ]
$3,500,000
  FHA 232 Mortgage Insured
Tax-Exempt Bonds & Sub Debt
  New Assisted Living Facility
  Somerset at University Place
  Winston-Salem, NC
  InnoVative Capital's Role:
  FHA Mortgage Banker
  [ case study ]
$50,000,000
  Hospital Revenue Bonds
  Tertiary Care Facility
Renovation and Expansion
  Memorial Health University Medical Center
  Savannah, GA
  InnoVative Capital's Role:
  Financial Advisor
  [ case study ]
$6,860,000
  FHA 232 Insured Ginnie Mae Loan
  Skilled Nursing Home
Renovation and Refinancing
  Citrus Health and Rehabilitation Center
  Inverness, FL
  InnoVative Capital's Role:
  FHA Mortgage Banker
  [ case study ]
$19,200,000
  Hospital Revenue Bonds
  Community Hospital
Refinancing and Expansion
  Daviess County Hospital
  Washington, IN
  InnoVative Capital's Role:
  Financial Advisor
  [ case study ]
$33,000,000
  FHA 242 Insured Ginnie Mae Loan
  Start-Up For-Profit Hospital
  Summit Hospital
  Phenix City, AL
  InnoVative Capital's Role:
  FHA Mortgage Banker
  [ case study ]
$37,000,000
  FHA 242 Insured Ginnie Mae Loan
  Community Hospital
Debt Refinancing & Expansion
  Knox Community Hospital
  Mt. Vernon, OH
  InnoVative Capital's Role:
  FHA Mortgage Banker and Financial Advisor
  [ case study ]
$20,000,000
  USDA Direct Loan
  Community Hospital Renovation
  DeSoto Memorial Hospital
  Arcadia, FL
  InnoVative Capital's Role:
  Financial Consultant
  [ case study ]
$59,000,000
  Doctorsí Hospital
Non-Rated Hospital Revenue Bonds
  Start-Up Non-Profit Hospital
  Doctorsí Hospital
  Bridgeport, TX
  InnoVative Capital's Role:
  Financial Advisor
  [ case study ]
$7,675,000
  FHA 232 Insured Ginnie Mae Loan
  Start-Up Skilled Nursing Facility
  Stone Oak Care Center
  San Antonio, TX
  InnoVative Capital's Role:
  FHA Mortgage Banker
  [ case study ]
VIEW SAMPLE OF RECENT FINANCINGS
 
The Tax Support of Independent Community Hospitals
by Alan P. Richman
Healthcare Financial
Management Magazine
 
Increasingly, community hospitals are under pressure to survive. Independence and prosperity are not mutually exclusive for many community hospitals, as long as they receive a little revenue support for new facilities and additional physicians. Dedicated limited taxes can provide the lifeline hospitals need to preserve community healthcare and enhance the local economy.

READ FULL ARTICLE      

STAY CONNECTED... LinkedIN - Alan Richman InnoVative Capital on Facebook Follow Alan Richman & InnoVative Capital
For HUD/FHA 242
Inquiries

corporate@innovativecapital.com
T: (610) 543-2490
F: (610) 543-2491

1489 Baltimore Pike
Building 400
Springfield, PA 19064

 
HUD-Licensed FHA Mortgage Lender and SEC/MSRB Registered Municipal Advisor
Invested in rural communities and hospitals
FHA Mortgage Banking | FHA Section 242 Mortgage Insurance Program | FHA 242 Loans | Rural Hospital Finance | Critical Access Hospital Finance
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InnoVative Capital is a HUD licensed FHA mortgage lender and SEC/MSRB-registered municipal advisor, specializing in the mortgage financing of rural hospitals, community hospitals and critical access hospitals using the FHA 242 Mortgage Insurance Program, tax-exempt and taxable bonds, bank debt, USDA Loans, and equity strategies. InnoVative Capital provides cost-effective and expedient access to the capital markets for hospitals, senior living, nonprofits and municipalities, as well as mergers and acquisitions representation and turnaround support.

InnoVative Capital 1489 Baltimore Pike, Building 400 | Springfield, Pennsylvania 19064 | Phone: 610-543-2490 | Fax: 610-543-2491

Copyright InnoVative Capital, LLC
 
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