Apartment and Healthcare Lending - FHA 223(f) - FHA 221(d)(4) - Fannie Mae and Freddie Mac Apartment - FHA 242/223(f) Hospital Lender
NEW FHA 242/223(f) Hospital Refinance WITHOUT Construction Required

Sunday, September 18, 2011

Small Apartment Loans Chicago - Fixed Rate Non-Recourse Low Cost Apartment Loans Nationally: FNMA SMALL APARTMENT LOAN THE PROCESS

Small Apartment Loans Chicago - Fixed Rate Non-Recourse Low Cost Apartment Loans Nationally: FNMA SMALL APARTMENT LOAN THE PROCESS

The Process - These loans have a process and they require good documentation. A commitment or rate lock will not happen until all the reports are in and all of the underwriting is complete. Once the commitment is issued, a rate lock and closing can be done quickly. If a loan does not fit the program an application will not be issued.

We will review some basic information about the properties historical income and the borrower's financials situation and then issue a quote. If the borrower likes the quote they will receive and sign the application and send the application deposit. The appraisal and other reports will be ordered. Once the reports are in and the borrower has submitted all the required documentation, the commitment will be issued. The borrower documents include organizational documents, personal financial statements, copies of bank statements, real estate schedules, property income and expense statements, rent roll, copies of leases as well as other forms.

Wednesday, April 20, 2011

Monday, April 18, 2011

Apartment Loan Rates - USA Downgrade Warning Day - Tax Day

Apartment Loan Rates - USA Downgrade Warning Day - Tax Day

Apartment Loan Rates not moving much considering all the news.

Ten year agency 5.68% - Seven Year 5.31%

FHA 223(f) 4.5% plus MIP

Friday, April 15, 2011


Agency 10 year rates move down to 5.70% for a ten year loan, and 5.35%
FHA 223 F 4.5% plus MIP

Thursday, April 14, 2011

Wednesday, April 13, 2011

Saturday, April 9, 2011

Last-Minute Deal Averts Shutdown WSJ

Last-Minute Deal Averts Shutdown http://on.wsj.com/h8N7n1 Budget cuts of $39 billion Dem held on to NPR and Women Health funds

Mr. Obama, speaking from the White House near midnight, said the two parties had worked together to produce "the largest annual spending cut in our history," and that "both sides had to make tough decisions. Mr. Obama turned the deal to his advantage by protecting Democratic priorities, such as medical funding for women's health programs, federal spending on education, environmental programs and NPR's car talk 

Sunday, April 3, 2011

FHA 223(f) Rates 4.50% 35 years

FHA 223(f) Loans Rates 4.5% due to the AAA rating of the GNMA securities Loan amount $2,500,000 and up

This program offers the best rate available for apartment loans and allows for refinancing of debt up to 83.33% and cash out loans up to 75% of value. The process takes about five or six months depending on FHA office and cost a little more than FNMA and Freddie Mac for the reports and FHA exam fee ($3 per $1,000).

The borrower must also hold excess cash flow in an account and only withdraw excess cash flow every 6 months.  Annual Audits of income and expenses and balance sheets are also required.

The interest rates and term (35 years) are the main draw.  With FNMA and Freddie Mac Multifamily operations under Government control and their parent company destined for closure, FHA GNMA MBS securities have become the highest rated mortgage backed securities with the lowest rates.  

This program is not for everyone but for large apartment loans you currently save one or more percent over FNMA or Freddie Mac 10 year loans.

Saturday, April 2, 2011

FHA 221(d(4 New Construction

FHA 221(d)4 New construction loans are being funded by FHA but the total amount of new construction funding is much smaller than the 223(f) refinance funding.  Rates at about 1.25 percent higher than 223(f) rates which are about 5% currently.

The cost of qualifying for a FHA new construction loan  exceeds most other financing programs since the developer must pay for working drawings, about $30,000 in lender required reports and an FHA exam fee of $3 per $1,000 of mortgage request.  The contractor must be able to bond a fixed construction price using Davis Bacon Prevailing local wages.        

The typical FHA borrower that use the FHA 221(d)4 program ofter is a repeat client and the transactions are normally in excess of $5,000,000 due to the costs of preparing for closing of the loan.

FHA allows a maximum loan of 83.33% of cost for market rate properties and slightly higher for affordable rental housing.  They also require an operating deficit fund and a 4% working capital letter of credit or cash deposit. Basically the equity requirement even after net out BSPRA (Deferred Developer Profit) equals or exceeds 20% at this time.

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