Background

Rockhall processed a streamlined refinance in conjunction with a transfer of physical assets to the new ownership entity. FHA’s streamlined finance program does not require an appraisal or environmental report and, requires a physical needs assessment only in limited cases. As a result, processing was quick and inexpensive.  The new loan covered all transaction costs and lowered the note rate by a third.

The project originally was financed with an FHA new construction loan in 1983. Rockhall paid off the original 10.55% FHA loan in 2004. At that time, we worked with HUD to renew the rental housing assistance payments contract and reduced debt service payments on the project by 50%. 

The Challenge

In 2011, the owners sought to sell the project in an arm’s length transaction. 

Outcome

Rockhall processed a streamlined refinance in conjunction with a transfer of physical assets to the new ownership entity. FHA’s streamlined finance program does not require an appraisal or environmental report and, requires a physical needs assessment only in limited cases. As a result, processing was quick and inexpensive.  The new loan covered all transaction costs and lowered the note rate by a third.