Multifamily-New Construction/Substantial Rehabilitation

This is conventional financing that is insured by FHA, resulting in favorable terms and low rates.  Subsidy requirements, affordable housing percentages and low/middle income requirements for tenants do not apply!  The program allows for upscale projects with pools, tennis courts, etc. as long as market rents and market expenses support the costs.

The program features permanent financing with one closing, and one interest rate lock, which is always lower than traditional bank financing. The program utilizes an interest only (interest is capitalized into the mortgage) construction loan that automatically converts to a 40-Year Permanent fixed rate mortgage upon completion of construction. 
                
90% Loan-to-Cost

40 Year Amortization

40 Year Term (no balloon)

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

“Developer’s Fee” of 10% of cost allowed to be used towards equity requirement

No personal liability (non-recourse)

Negotiable pre-payment terms

1:10 Minimum Debt Service Coverage

This loan is always assumable

Third-party expenses and loan costs may be financed. 

Rates and Terms determined by LTV, credit, property type and other conditions. This is limited information and meant for general reference purposes.