Refinance/Moderate Rehab

While keeping all of the desirable features of the market rate acquisition loan program (low interest rate, fixed rate 35-year term), FHA offers more generous terms for affordable deals. The minimum debt service coverage for affordable deals with rental assistance can be as high as 1.11 and the loan to value can be as high as 90%. The FHA loan will finance rehabilitation hard costs up to 15% of the replacement cost of the project or $6,500 per unit. Normally, plans and specifications are not required so long as the work is described in sufficient detail. If you are looking to refinance and do some work on an affordable multifamily rental property, call us for a financing proposal, you might be surprised with what you get. Click here for a detailed term sheet.

Summary of Terms - FHA 223(f) Affordable Refinance
LTV 87-90% (80% when Cash-Out) / DSCR 1.15-1.11 / Up to 35 Year Term

Sub Rehab

While keeping all of the desirable features of the market rate construction loan program (construction-perm, imputed developer fee, fixed rate 40-year term), FHA offers more generous terms for affordable deals. The minimum debt service coverage for affordable deals with rental assistance is an industry-leading 1.11 and the loan to cost limit is (also industry-leading) 90% -- and this isn’t accounting for the developer fee. In addition to bringing a thorough knowledge of FHA affordable housing finance programs, Rockhall personnel are familiar with the regulatory requirements and subsidy programs that apply to affordable housing developments. Click here for a downloadable term sheet.

Summary of Terms - FHA 221(d)(4) Affordable
LTC 87 to 90% / DSCR 1.15 to 1.11 / Term of Construction Period plus 40 Years

New Construction

While keeping all of the desirable features of the market rate construction loan program (construction-perm, developer fee, fixed rate 40-year term), FHA offers more generous terms for affordable deals. The minimum debt service coverage for affordable deals with rental assistance is an industry-leading 1.11 and the loan to cost limit is (also industry-leading) 90% -- and this isn’t accounting for the developer fee. Recent developments in municipal finance have made FHA-insured 4% tax credit transactions using tax exempt bonds the deal to beat. If you haven’t considered financing your affordable multifamily transaction with FHA and municipal “short bonds,” please call us. You will like what you hear. For more details on FHA-insured affordable new construction programs click here.

Summary of Terms - FHA 221(d)(4) Affordable
LTC 87 to 90% / DSCR 1.15 to 1.11 / Term of Construction Period plus 40 Years

Acquisition

While keeping all of the desirable features of the market rate acquisition loan program (low interest rate, fixed rate 35-year term), FHA offers more generous terms for affordable deals. The minimum debt service coverage for affordable deals with rental assistance can be as high as 1.11 and the loan to acquisition cost can be as high as 90%. Projects with FHA financing in place can be very quickly refinanced by new buyers if no additional debt is sought. HUD won’t even require an appraisal. It is no longer necessary to choose between a great loan and a quick closing. For buyers of projects that aren’t currently FHA financed, Rockhall offers an acquisition bridge loan program that ensures a quick closing on the purchase. The bridge loan will be taken out by a low interest rate FHA permanent loan. If you are looking to buy an affordable multifamily rental property, call us for a financing proposal, you might be surprised with what you get.

Summary of Terms - FHA 223(f) Affordable
LTV 87% to 90% / 100% of Cost / DSCR 1.15 to 1.11 / Up to 35 Year Term

Streamlined Acquisition FHA-Insured Loans Only

Someone purchasing a property currently financed with an FHA loan can refinance the existing loan with a loan equal to the original balance and term of the original loan without an appraisal, environmental review and possible a capital needs analysis. The process is very quick and enables the new buyer to take advantage of current market interest rates.

If you are looking to buy a multifamily rental property that currently is FHA insured, call us for a financing proposal, you might be surprised with what you get. Click here for a detailed term sheet.
Summary of Terms - 223(a)(7) Affordable
No Appraisal / Up to Original Balance and Term of Existing Loan / 1.05 DSCR