New Construction or Substantial
Rehabilitation Insured Financing
FHA Section 221(d)(4)
The goal of this mortgage insurance program is to provide the new construction or substantial rehabilitation of market rate and/or affordable multifamily rental housing projects nationwide.
Through a two stage application process, called Multifamily Accelerated Processing (MAP) and with the help of our own in-house underwriters, we expedite your loan package. It usually takes six to nine months before the shovel can hit the dirt. Finance now with record low rates for a non-recourse, GNMA securitized, fixed rate loan. Average loan size is approximately $7,000,000 and typically costs you $75,000.
Benefits of this loan include no occupancy or stabilization requirements for conversion to permanent loan, fully assumable, and no rent control restrictions or affordability requirements. GNMA securitization.
Does your project qualify?
- At least $6,500 per unit in rehab work of an existing market rate, and/or affordable multifamily rental housing.
- Replacement of two or more major building components.
- New construction of market rate, and/or affordable multifamily rental housing.
- Maximum Mortgage Limits.
The lesser of:- HUD Statutory Limits
- 90% Loan to Cost
- 1.11 Debt Service Coverage Ratio
- Maximum term and amortization the lesser of 40 years (+ up to two years for construction) or 75% of remaining useful life.
- Annual Mortgage Insurance Premium of 45 basis points.
View Complete Terms & Conditions PDF