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The Love Funding hospital finance team can execute a variety of transactions, including FHA 242, New Market Tax Credits, traditional bond financing and USDA loans.

FHA 242 Financing

The FHA 242 program provides mortgage insurance for acute care hospitals nationwide. U.S. Government backing of financing results in AA/AAA credit rating enabling hospitals to obtain very attractive interest rates. Love Funding will explore funding your FHA 242 loan via a variety of funding alternatives to ensure your hospital gets the most affordable financing available.

FHA Loan Funding Sources

Ginnie Mae Mortgage Backed Securities
Tax exempt bonds
Taxable bonds

Eligible Hospitals

Acute care hospitals
Critical Access Hospitals
Long term acute care hospitals

Uses of FHA Loan

New construction
Refinance existing debt

Eligible Ownership Types

Not for profit
For profit
Government owned

HUD’s rejuvenated hospital finance program has become a viable source of capital to many hospitals across the country. As evidence of this, HUD insured $943 million in hospital loans in 2006 and over $1.7 billion in 2010.

New Market Tax Credit Syndication

Love Funding has identified creative financing structures to augment FHA 242 financing and provide additional equity and/or working capital solutions to ensure your project’s success. If your hospital is located in an eligible low-income area, you may qualify to benefit from the federal New Market Tax Credits (NMTC) program.

GNMA MBS Financing

Love Funding is a fully-approved Ginnie Mae Mortgage-Backed Securities issuer and servicer. Funding your hospital’s loan with a taxable GNMA MBS has many advantages over tax-exempt bond financing:

  • Guaranteed by the U.S. Government
  • No credit rating agency involvement
  • Lower transaction costs and quicker execution
  • Lowest interest rate in marketplace
  • No ongoing public disclosure requirements

Advisory Services

Love Funding, through its own staff and its vast network of industry contacts, can assist in every aspect of executing a hospital project financing. As a courtesy to potential clients, we provide the following services:

  • HUD eligibility screen
  • NMTC eligibility screen
  • Debt capacity analysis
  • Shadow bond rating
  • Financial feasibility and strategic advisory firm recommendations


Steven Hunt

Senior Director
Hospital Finance
Phone (678) 595-8238
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