HUD

Under HUD’s Multifamily Accelerated Processing Program (MAP), our Lender can provide consistent time frames for financing multifamily transactions under all of the basic FHA insurance programs. HUD’s LEAN Program provides the same benefits for healthcare transactions.

Acqusition or Refinance of Multifamily HousingAcqusition or Refinance of Healthcare Facilities
Property TypesMarket Rate, Affordable and Subsideized MultifamilySkilled Nursing (Skilled and Intermediate Care), Assisted Living and Board & Care facilities.
Eligible BorrowersFor profit and non-profit entitiesFor profit and non-profit entities
Loan AmountNo Minimum/No Maximum (subject to statutory mortgage limits)No Minimum/No Maximum
LocationNationwideNationwide
Term & AmortizationUp to 35 years and fully amortizing Up to 35 years and fully amortizing
General Loan TermsThe maximum loan is the lesser of: [1] 83.3% (85% for Affordable) Loan to Value, [2] 1.20x Debt Service Coverage, and [3] 80% Loan to Value if cash out The maximum loan is the lesser of: [1] 80% (85% non profit) Loan to Value, [2] 1.45x Debt Service Coverage, [3] 100% of the cost to refinance including repairs, and [4] 80% of acquisition costs
Interest RateFixed rate, subject to market conditions at the time of rate lockFixed rate, subject to market conditions at the time of rate lock
RecourseNone, except for standard carve-outsNone, except for standard carve-outs
AssumableYes, subject to HUD approvalYes, subject to HUD approval
PrepaymentTypically loans are prohibited from prepayment for the 1st year, then have a 9% penalty declining 1% each year thereafter until 0%. Alternative lockout and prepayment structures are available.Typically loans are prohibited from prepayment for the 1st year, then have a 9% penalty declining 1% each year thereafter until 0%. Alternative lockout and prepayment structures are available.
Mortgage Insurance Premium1% at closing, 0.6% annually 1% at closing, 0.6% annually
OtherProperties must average physical occupancy levels of 85% for 6 months prior to submission and maintain that level through loan closing.Cash out refinancing not permitted
Escrow required for repairs, mortgage insurance premium, taxes, insurance and replacement reserves.Escrow required for repairs, mortgage insurance premium, taxes, insurance and replacement reserves.
Third party reports include appraisal, PCNA and Phase IThird party reports include appraisal, PCNA and Phase I
Secondary financing is allowed subject to HUD approval Secondary financing is allowed subject to HUD approval