Refinancing Section 202 Properties with FHA 223(f) Permanent Loans
New HUD guidelines make refinancing under Section 223(f) a great way for property owners to improve their Section 202 properties. In a nutshell, benefits include: Lowering project debt service by locking in a low fixed interest rate for up to 35 years; Financing deferred maintenance items and capital improvements that improve living conditions for tenants, […]
Conventional Multifamily Developers: A Fresh Look at the New FHA
In the past, many multifamily developers did not consider FHA a viable option for construction financing. Recent changes have made FHA worthy of a second look. What’s Changed? Before. It wasn’t uncommon for loan applications to sit in limbo until field office staff became available to work on them. HUD seemed overly focused on file […]
Who Says You Can’t Place Supplemental Debt on an FHA-Insured Property?
FHA has a prohibition on second mortgages secured by real estate. That doesn’t mean that subordinate debt is out of the question. Many affordable housing projects received HOME Loans and other subordinate financing from state and local programs. To refinance these programs, the subordinate lenders must agree to have their loans restructured as cash flow […]
You’re Going to Build or Rehab an Apartment Project
If you are planning a new multifamily development or intend to substantially rehabilitate an existing project, you should call us early in the process. Rockhall has construction experts who can save you time and money throughout the process. FHA has very detailed third party report requirements. If you are ordering a market study, soil borings […]
Tax Exempt Short Bonds + 4% Tax Credits + FHA Mortgage Insurance = A Sweet Deal for Your Affordable Rental Housing Project
A new municipal bond structure has significantly improved the efficiency of coupling FHA-insured construction loans with tax exempt bonds. Because federal law links 4% low income housing tax credits (“LIHTC”) to the award of municipal bond allocation (“bond cap”), FHA-insured transactions can now access 4% tax credits without assuming the high issuance and debt service […]
When Does An FHA Apartment Loan Make the Most Sense?
If you are looking for an apartment loan, you aren’t alone. Over $130 billion of apartment loans will be originated this year. Major apartment finance options include: FNMA/FHLMC, insured depository institutions (banks, thrifts and credit unions), life insurance companies (and some pension funds), Wall Street conduits and FHA. Each of these programs has its own […]
Are You Considering Getting Involved with Senior Housing?
We frequently hear from multifamily developers who are thinking about getting into the assisted living market. They control a piece of land and the zoning works for either multifamily or assisted living. The pro forma rents for assisted living are much higher than multifamily so, on first blush, it appears that assisted living is the […]