HUD APARTMENT LOAN PROGRAM

Eligible Properties Refinance and Acquisitions of existing multifamily dwellings. Projects may be detached, semi-detached, row houses or multifamily structures. The project must be at least three years old and not have been substantially rehabilitated with the past three years.
Borrower

Single asset enitity.
Loan Features Low interest rate fixed for up to 35 years, flexible underwriting, moderate repairs allowed. Allow 7.5% seller financing .
Loan Amount No Minimum, No Maximum.
Loan Term 40 years, fully amortizing.
Amortization 40 years.
Recourses Non-recourse.
Assumability Assumable, subject to approval and transfer of physical assets.
Prepayment Five-year lockout then 5%, 4%, 3%, 2% 1% of loan amount .
Loan to Value Up to 90% for profit motivated organizations.
Up to 95% for non-profit organizations.
Debt Coverage Ratio Minimum 1.11 to 1.
Maximum Mortgage The lesser of 90% of replacement costs, debt supported by 90% of NOI at stabilized rents, or 90% of the statutory mortgage limits.
Substantial Rehab Qualifications Must include at least one of the following: $6,500 per unit adjusted by the local high cost factor, 15% of the post rehab appraised value, or more than one building system is being replaced (e.g. roof, ceiling, wall or floor structures, foundations, plumbing, HVAC or electrical systems.)
Commercial Space No more than 10% of the net rentable square footage and no more than 15% of total gross receipts (20% and 30%, respectively, for projects in defined urban renewal areas).
Interest Rate Based on current market conditions. Rate fixed upon issuance of Firm Commitment by FHA. Provides taxable or tax-exempt financing for qualified projects.
Occupancy Underwritten with a minimum vacancy of 7%.
Financing Fees Depends on loan size.
FHA Application Fees 0.3% of the loan amount.
Davis-Bacon Wages Required.
Builder's & Sponsor's Profit Up to 10% of total costs if borrower has an identity of interest general contractor.
Processing Time Pre-application review by HUD: 45 days.
Firm commitment review by HUD: 45 days.
Shorter processing time under Multifamily Accelerated Processing (MAP).
Loan Request Package

Include the following in your request for a loan quote:
1. Property description and location map.
2. Number of units with breakdown of proposed rents by unit type.
3. Proforma operating budget, including breakdown of other income.
4. Aquistion cost of the land.
5. Digital Photos of Property.

MULTI FAMILY PROGRAMS

PROGRAM SUMMARY

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