Silver Oak
Amarillo, TX; 240 Units, Market Rate Apartments


The owners completed construction in 2001 and sought to refinance to lower their debt service cost and take some cash out.

The Challenge

The borrower was new to HUD and needed to be familiarized with HUD requirements. The project is large for a secondary market. Rockhall had to establish that there is sufficient rental demand for the project to support itself.


The FHA financing needed to cover a number of repair items, fund replacement reserves, pay off existing debt and provided significant cash to the borrower.  Because of the much lower interest rate and longer amortization term of the FHA mortgage, the borrower’s debt service cost actually went down. The borrower was so pleased with Rockhall that he signed us up to finance the new construction of a similar project also in Amarillo. That project presently is under construction.