HUD Section 202 Refinance

Program Summary:
Recently, HUD issued policy change H 04-21 to the Section 202
Housing Code. This major policy change allows Section 202 communities to refinance debt at today’s low rates and use the savings to improve facilities and enhance the living experience for residents.

90% Loan-to-value, no cash out

35 Year amortization

35 Year Term (no balloon)

No maximum loan amount
                       
Low, fixed interest rate, based on market spreads over the Ten-Year Treasury Yield.

Negotiable pre-payment terms

1:18 Minimum Debt Service Coverage

Third-party expenses and loan costs may be financed. 

Net Operating Income and valuation may utilize Section 8 Contract rents.  Rates and Terms determined by LTV, credit, property type and other conditions. This is limited information and meant for general reference purposes.