Hud Now

COMMERCIAL  FHA  FINANCING

FHA/HUD underwriting loan terms and restrictions are different than conventional loans.  They look at numbers differently and limit loans based on things other than LTV and DSC.  Because of this, you must work with someone who has extensive experience in HUD lending and knows how to process your loan.  Make sure they are active lenders, not approved lenders that only dabble in FHA commercial lending.

 

HUD does not lend money, FHA provides insurance on the loan allowing the lender to sell a security to fund the loan.  So FHA/HUD underwrites and approves the loan, they do not fund it.  Lenders are insured against loss on mortgage defaults.  The programs allow for long term mortgages (35-40 yrs, fully amortized for the length of the loan, no balloons, no change in rate) that can be financed with Government National Mortgage Association (GNMA) mortgage backed securities.  This eligibility for purchase in the secondary mortgage market improves the availability of loan funds and permits more favorable interest rates.

 

                SECTION 223 (f)

  MULTIFAMILY APARTMENTS

    PURCHASE OR REFINANCE

  •      ♦   lowest fixed interest rate for 35 years
  •      ♦   no balloons, no readjustments to rate
  •      ♦  fully assumable, fully amortized
  •      ♦  non-recourse, higher LTV
   

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SECTION 221 (d)

          NEW CONSTRUCTION SUBSTANTIAL REHABILITATION

  • ♦  lowest fixed interest rate for 40 years plus construction period interest only built into loan
  • ♦  automatic conversion from construction to permanent loan
  • ♦  fully assumable, fully amortized, non-recourse, highest LTV

                                                                                                                                                                                                                       Read more

                   SECTION 242

                     HOSPITALS

  • ♦  for-profit, not-for-profit, and government-owned-hospitals are eligible
  • ♦  can use for construction, remodeling, seismic upgrades, expansion, modernization, equipment or refinancing
  • ♦  no minimum or maximum loan amount
  • ♦  loan-to-value up to 90%, 25 year fully amortizing loan, plus construction period
 

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                   SECTION 232

               ASSISTED LIVING

               NURSING HOMES

  • ♦  insured mortgage may be used to finance both the construction and permanent loans
  • ♦  no occupancy threshold to convert the construction loan to the permanent loan
  • ♦  non-recourse loan,  fully assumable
  • ♦  major moveable equipment can be included in loan
     

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                SECTION 207 (m)

   MANUFACTURED HOME PARKS

PURCHASE - REFINANCE - SUBSTANTIAL REHABILITATION - NEW CONSTRUCTION
    •   ♦  up to 90% LTV
    •   ♦  up to 40 years
    •  ♦  non-recourse
   

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SECTION 220

URBAN RENEWAL

 insures loans for multifamily housing projects in urban renewal areas, code enforcement areas, and other areas where local governments have undertaken designated revitalization activities

   

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