Apartment Loan Store

(503) 376-7303 Nationwide Since 1997

 

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Loans $750,000 to $500,000,000
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HUD FHA Apartment/Multifamily Loans/Financing

HUD loans with the lowest 30 to 40 year fixed rates in America, our apartment loans are by far the most attractive multifamily financing in the U.S.

With the lowest 30 to 40 year fixed rates in America, our HUD Apartment loans are by far the most attractive multifamily financing available in the US.

Apartment Loan Store has been a specialist in funding HUD Multifamily Apartment Loans since 1999 lending in all 50 states.   

Created as a cabinet level agency in 1965, HUD is an acronym for US Department of Housing and Urban Development. HUD’s purpose is to create more quality housing in the US. It is a misunderstanding by many that HUD only supports financing on low income or affordable housing projects – although HUD certainly encourages the development of affordable projects. More HUD apartment loans are done today on market rent apartment buildings than affordable rent complexes. 

Why are HUD Multifamily loan interest rates so low? HUD issues mortgage insurance on these loans which allows them to be pooled and sold as Gennie Mae (GNMA) bonds on Wall Street. These bonds carry the full faith and credit guaranty of the United States Government, which makes them very attractive to low risk investors both nationally and internationally. 

Types of HUD Apartment Multifamily Loans:

Multifamily Acquisition or Refinance Loan

Multifamily New Construction or Major Rehab Loan

Multifamily Streamline Refinance
 

MULTIFAMILY ACQUISITION OR REFINANCE LOAN - HUD FHA 223 (f)  Assumable non-recourse financing for the purchase or refinance of existing multifamily properties. Lite rehab allowed. Up to 83.3% LTV. Maximum term and amortization 35 years. 

  • Minimum Loan:  $2,500,000    Maximum Loan:  None
  • LTV:  85% for market rates, 87% for affordable, and 90% for rental assistance, 75% for cash out
  • Rates Fixed up to 35 years
  • Term: Up to 35 Years    Amortization:  Up to 35 years
  • Minimum DSCR:  Market Rents: 1.176, Affordable: 1.15, Rental Assistance: 1.11
  • Non-recourse
  • Commercial Space: 25% of net rentable area and 25% of effective gross income
  • Assumable with a .50% fee
  • Qualified Properties:  Must have 3 years since certificate of occupancy
  • Repairs: Cannot exceed the greater of $15,000 per unit
  • Occupancy: Minimum of 90% for 90 Days
  • Age Restricted Properties of 62 or older allowed
     

MULTIFAMILY NEW CONSTRUCTION LOAN - HUD FHA 221 (d)(4): This assumable non-recourse loan can also be used for substantial rehabilitation. The construction and perm loan are all in one. Up to 85 of cost, Maximum term and amortization 40 years.

  • Minimum Loan: $3,000,000   Maximum Loan:  None
  • Loan to Cost:  Up to 85% with no Loan to Appraised Value required. 87% of replacement cost for Affordable, 90% of replacement cost for projects with 90% or greater rental assistance  
  • Very Low Rates fixed for 40 years. .65% Mortgage Insurance Premium required
  • Term: 40 years, Non-recourse
  • Minimum DSCR: Market Rents: 1.20, Affordable: 1.15, rental Assistance: 1.11
  • Assumable with a .50% fee
  • Non-recourse
  • Age Restricted Properties of 62 or older allowed
     

MULTIFAMILY STREAMLINE REFINANCE  -  HUD FHA 223 (a) (7): Only for existing HUD apartment loans and Healthcare loans. This loan can close fast (60 days), requires no appraisal and has very low loan expenses and the best bonus - The purpose of this loan is to lower your loan payments at times when interest rates are lower. Maximum loan amount is the original mortgage, or existing HUD loan balance plus repairs and loan expenses. There is no LTV - loan to value constraint.

  • Loan Amount:  Lesser of: A) Original principal amount of current HUD mortgage or (B) Current principal balance plus loan expenses, closing costs and prepayment penalty costs - plus the cost of deferred maintenance repairs or improvements.
  • Term: Not to exceed the original term, or up to 12 years beyond the remaining term of the current HUD loan. Remaining economic life of the property will be considered.
  • Interest Rate fixed for entire term
  • Amortization is the same as the loan term
  • Minimum DSCR: 1.11 to 1.20
  • LTV: No loan to value constraint
  • Non-recourse
  • Cash Out: Not allowed
  • Third Party Reports: No Appraisal,  usuallly no environmental report, no property condition report (PCNA) needed unless one has not been completed in the last 10 years.
  • Assumable with a .50% fee
  • Reduced Loan Fees and Expenses
  • Time for funding: 60 days

Need help calculating your DSCR? Try our free Debt Service Coverage Ratio Calculator here.

Want to learn more about DCSR and why it is the Number One Factor in analyzing the risk level of your business or investment property loan? Read our current article here! 

 

ARE YOU A GOOD MATCH FOR A HUD APARTMENT LOAN?

Answer These Questions and Find out Fast

 

To Score Add Up All Yes Answers

Do you have current or recent Multifamily (5 Units or more) ownership experience?

YES          NO

Do you have at least 15% of the cost or value of the project in equity or cash, or can bring in a partner that can help you achieve this?

YES          NO

Do you have a Credit Score of 660 or above? 

YES          NO

It it correct that you have no tax liens?

YES          NO

Is it correct that you have never defaulted on a Federal loan guaranteed by HUD?

YES          NO

Do you currently have some post closing cash (cash left over after the loan closes) or can you bring in a partner to help you achieve this?

YES          NO

Are you a US Citizen or Resident Alien?

YES          NO

Are you willing to hire a HUD experienced property management company if you do not have prior HUD property management experience?

YES          NO

Have you run the numbers with income and expenses to show that the property is running profitably?

YES         NO

Will the subject property have 25% or less Commercial Space?

YES         NO

Does your project have the time and are you willing to wait for a HUD Apartment Loan Closing?  This will take 6 – 7 months for a refinance or purchase, 8 – 9 months for a construction project

YES         NO

Do market rents in the submarket of the subject property support the rents that you have or are planning on having for the subject property?

YES        NO

Are you willing to own the property in a single asset entity like an LLC (Limited Liability Company)?

YES       NO

Will a long term, low rate 35– 40 year fixed rate mortgage that is assumable be your preference?

YES       NO

Are you willing to go through a lengthy and complicated loan application process to obtain the best quality long term fixed rate mortgage available in America?

YES       NO

Are you willing to keep the subject property in excellent condition during the entire time you have the HUD mortgage?

YES       NO

Are you ok with a HUD requirement requiring replacement reserves?  This is  an additional  amount paid into a repair/capital replacement escrow account with your mortgage payment each month.  This account will be used for repairs and major replacements to the property such as replacing a hot water heater, or roofing, etc..

YES       NO

Are you ok with the HUD requirement for annual audited financial statements on the property?

YES      NO

Are you ok with HUD making annual inspections of the subject property?

YES      NO

Are you ok with HUD restrictions on cash distributions to owners?

YES      NO

 

Are you a good match for a HUD Apartment Loan? 

If you answered YES 18 times or more    =     EXCELENT MATCH

If you answered YES 16 times or more    =      GOOD MATCH

If you answered YES 14 times or more   =       FAIR MATCH

If you answered YES less than 14 times  =       POOR MATCH

If you have 14 or more YES answers call one of our friendly loan specialists to size and pre-qualify you for a HUD Apartment Loan and to find out more about the program:  503-376-7303