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 […]
Prevailing Wage – Maybe It Isn’t As Bad As You Think
HUD requires that all new construction and substantial rehabilitation projects comply with Davis-Bacon prevailing wage requirements. We have found that concerns about prevailing wages often are overstated. First of all, labor costs make up about a quarter of construction costs. So, even if prevailing wages were 10% higher, the overall impact on construction costs would […]
Mortgage Rates May Be Lower Than You Think
Looking solely at US Treasury Security yields to get an idea of commercial mortgage rates can be misleading. FHA commercial mortgages today are priced comparably to what they were last year at this time, and even to what they were in December 2011, despite varying Treasury yields. Today, FHA permanent and new construction mortgages are […]
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 […]