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. If you need a lender with over 30 years of experience working exclusively with FHA/HUD commercial loans call us at 541-505-7424.
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.
MULTIFAMILY RENTAL HOUSING FHA 223(f)
Section 223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing and are a great financing option for borrowers looking for maximum leverage with longer fixed rates and terms.
The HUD/FHA 223(f) is a market rate apartment program with no tenant income restrictions or requirements.
HOSPITALS - CONSTRUCTION, REHAB, ACQUISITION, REFINANCE
New regulation implementing the section 242/223(f) statutory authority to refinance existing hospitals became effective on March 7, 2013. It allows existing hospitals to refinance capital debt without a construction component requirement. **Capital Debt: outstanding indebtedness used for the construction, rehabilitation, or acquisition of the physical property and equipment of a hospital, including those financing costs approved by HUD** Section 242/223(f) can also be used to acquire an existing hospital. **Acquisition: the purchase by an eligible mortgagor of an existing hospital facility and ancillary property associated therewith** 223(f) Limited Rehabilitation: additions, expansions, remodeling, renovation, modernization, repair and alteration of existing buildings including acquisition of equipment where the hard cost is less than 20% of mortgage amount. **Hard Cost: cost of the construction and equipment including construction manager fees** **Soft Costs: reasonable and customary legal, organizational, consulting, and such other costs associated with effecting the proposed project and its financing or refinancing**