HUD Lowers MIP for Certain Affordable or Green Multifamily Projects
Starting this month, HUD is dramatically lowering the mortgage insurance premium (“MIP”) on new loans for certain affordable and energy efficient multifamily housing projects. The lower rate will incentivize owners to provide more affordable rental housing and to implement measures to make projects more sustainable. These changes only apply to multifamily but the HUD is […]
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 […]
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 […]