Loan Programs

Supplemental Loans

HUD Section 241(a)

The HUD 241(a) program provides a process for borrowers with existing affordable properties insured by HUD to finance repairs, replacements (including major movables), energy conservation measures, and additions. The program is design to allow property owners to extend the life of their project and remain competitive in the marketplace. 241(a) is a supplemental loan, it does not require the refinancing of the underlying first mortgage.

The term of the 241(a) loan must be coterminous with the existing FHA insured first mortgage unless remaining term is 25 years or less. If less than 25 years, term can extend up to 40 years.

Third party reports, reserves, escrows, and Davis-Bacon requirements are generally identical to the 221(d)(4) new construction programmatic requirements.

Typically, the 241(a) program takes about 4-6 months to complete.

Creative Solutions

Bedford Lending is a nationwide leader in providing finance solutions for affordable housing projects throughout the United States. No project is too big, small, or complex. We frequently finance loans that other lenders or institutions have difficulty completing. We have successfully worked on projects funded by, including, or requesting:

  • Section 202 Loans
  • Section 236 Loans (inc IRP Decoupling)
  • RAD Conversions
  • 9% & 4% Low Income Housing Tax Credits (LIHTC)
  • Tax Exempt Bond Financing
  • Flex Subsidies
  • HAP Contracts

Often times, we meld subordinated loans or grants with our direct loan programs to fill critical equity gaps. Our direct HUD programs can be used to fund capital improvements, replenish replacement reserves and to add supportive services. In addition, we have extensive experience securing rent increases and helping with regulatory issues free of charge.


  • 90% LTC
  • 1.11x DCR