FHA Loan Benefits/Requirements/Rules 
Rates are on the move again. The US 10-YR Treasury note topped 3% today while the 2-YR Treasury note hit its highest level since September 8, 2008. If you’ve been pushing off that refinance, the time to act may be now. You can still lock in today a 35-year fixed FHA insured loan in the 3.85%-4.10% […]
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, […]
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 […]
Multifamily developers who haven’t thoroughly explored FHA financing should call Rockhall for a no obligation analysis of their project. The most striking benefit of the FHA construction program is that the loan is a construction/perm. After the construction period, the loan converts to a fully-amortizing fixed rate permanent loan. Construction and permanent interest rates on […]
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 […]
Some borrowers are put off by the FHA mortgage insurance premium. A good way to do an “apples to apples” analysis of different financing options is to compute the mortgage constant for each. The mortgage constant is the annual debt service cost including principal, interest and mortgage insurance. FHA commercial mortgages have a longer amortization […]
On July 7, 2014, HUD issued Mortgagee Letter 2014-14, which raises statutory limits for multifamily programs. According to Rockhall EVP Scott Brown, “These revisions should make FHA multifamily programs viable in many new high cost markets that previously had been priced out by the old statutory limits.” For more information, contact your Rockhall originator for […]