HUD’s Office of Hospital Facilities administers the FHA Section 242 Mortgage Insurance Program, which provides FHA mortgage insurance to approved hospitals for low interest capital project loans, acquisitions and debt refinancings. Eligible projects include: hospital expansion, remodeling, and replacement, as well as equipment purchases, medical office buildings and clinics. HUD/FHA 242 borrowers range from critical access hospitals to urban teaching facilities and national health systems.
As a HUD-licensed FHA mortgage bank, InnoVative Capital originates FHA 242 mortgage insured loans for nonprofit, government-owned, and for-profit hospitals. InnoVative Capital’s proprietary FHA 242 hospital analytics have been at the forefront of the ongoing evolution of the FHA 242 Program.
Advantages of HUD FHA 242 Loans
HUD FHA 242 Mortgage Banking Services
Transaction and Project Planning Services
FHA 242 Pre-Application
InnoVative Capital evaluates each client’s financial position to determine debt capacity, optimize project budgets, calculate required capital contributions, and structure necessary liquidity reserves. We outline supplemental revenue sources that may be available through tax support, government grants, corporate partnerships, physician recruitment and service-line modifications. InnoVative Capital’s CFO HELPER® analytics are incorporated into client reports, FHA submissions, and public presentations.
FHA 242 Application and HUD Underwriting
As FHA mortgage banker, InnoVative Capital receives HUD’s invitation to submit its proprietary FHA 242 mortgage insurance application. We oversee the development of all financial and project-related reports. InnoVative Capital negotiates HUD terms and conditions and accelerates the delivery of an FHA 242 mortgage insurance commitment.
HUD Commitment, Financing and Loan Closing
Upon our receipt of the FHA 242 mortgage insurance commitment, we assess the benefits of municipal bonds versus Ginnie Mae mortgage securities. Once a decision is made, InnoVative Capital works to close the loan. Thereafter, we provide cost-certification, loan monitoring and covenant compliance services.