The U.S. Department of Housing and Urban Development (HUD) has a mortgage insurance program for the purchase or refinancing of an existing multifamily project.

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ELIGIBLE PROPERTIES

Market Rate, Affordable, and Subsidized Multifamily.

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ELIGIBLE BORROWERS

Single-asset, special purpose entities, either for-profit or non-profit.

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LOCATION

Nationwide.

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LOAN AMOUNT

No minimum/no maximum (subject to General Loan Parameters).

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INTEREST RATE

Fixed-rate, subject to market conditions at the time of rate lock.

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TERM & AMORTIZATION

Up to 35 years and fully amortizing.

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LIABILITY

Non-recourse.

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MORTGAGE INSURANCE PREMIUM

Depending on property type:

.25% to 1.0% at Closing

.25% to .60% Annually

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ASSUMABILITY

Yes, subject to HUD approval.

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PREPAYMENT

Typically loans are prohibited from prepayment for the 1st year, then have a 9% penalty declining 1% each year thereafter until 0%. Alternative lockout and prepayment structures are available.

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OTHER

• Properties must average physical occupancy levels of 85% for 6 months prior to submission, and maintain that level through loan closing.
• Escrows required for repairs, mortgage insurance premium, taxes, insurance, and replacement reserves.
• Third party reports include Appraisal, PCNA, and Phase I.
• Secondary financing is allowed, subject to HUD guidelines and approval.

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CASH OUT

Based upon 80% of HUD appraised value of property.

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GENERAL LOAN PARAMETERS

See chart below. TO COME.