Apartment Loan Rates

Apartment Lender Commercial Mortgage Rates FHA FNMA and SMALL Apartment Loans
Updated Apartment Loans Rate Chart

Apartment Lender Rate Commercial Mortgage Loan 4/20

FNMA RATE dropped 10 year apartment 5.60% - Seven Year 5.20% FHA 223(f) FHA 232 223(f) 4.5% plus MIP Happy 4/20

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.

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.

FHA 223(f) and FHA 221(d) Apartment Loan Changes

FHA 221(d)(4) Market Rate Rents 83.5% maximum loan to cost 1.20 Debt Service Coverage.

FHA 223(f) Apartment Loan Market Rate Rents 1.20 Debt Service Coverage.

More details at http://www.fhaapartmentlender.com/

FHA 223(f) Three Year Rule Waiver Revised

July 29, 2009 Revised Temporary Waivers of three year rule for Section 223(f)

Property must have a Certificate of Occupancy (CO) dated no later than the date of the loan application. In other words, a waiver is possible for all new properties that are built and have a CO.

Happy Days are here again!

More on FHA 223(f) Waivers

Kendall News Letter 5-15-09

Last year in a series of emails, we discussed solutions to the slow down in condo sales. To review:

• According to Harvard University’s Joint Center for Housing Studies, 14 million new households will be created in the next 10 years, and 6-7 million of these will be renters. In the past 10 years only one million net units have been added to inventory over the last 10 years, so there is going to be a “significant need” for more units.
  

• The need for housing will continue even in these slow economic times for all of the normal reasons such as family formation, job relocation, increase in population, downsizing by senior citizens, and older housing units going out of service.
  

• Many partially sold condo projects have come to us for assistance in conversion to rentals. We have successfully found investment sources to handle this situation, and we anticipate an increasing need as the housing market demands more rental units
  

We have joined with a FHA, Fannie Mae, and Freddie Mac lender and the leader in the New Senior LEAN Processing. We have also forged relationships with large General Contractors to work on unfinished condo projects and convert them to rentals. Together we handle the debt as well as the ownership exit.

We are always looking for more projects. If you think we could help you, please call Chuck Kendall at 773-259-7074 or Scott Kendall at 847-903-7578, or email us at Chuck - ckendall@kendallrealtyadvisors.com or Scott - kendallrealty@gmail.com.

Rates FHA FNMA FREDDIE MAC TREASURY ACTION

Treasury Auction Flops

10 year treasury bond jumps up to 3.28% from 3.15%

Rates are going up.

Apartment and Healthcare Facility Loans

Kendall Realty Advisors is working on FHA 232 Lean, FHA 221(d), FHA 223(f), FHA 242 Hospital Loans.

We are also offering Fannie Mae and Freddie Mac Affordable Multifamily Housing and Market Rate Apartment Loans.

For Apartment, Nursing Home, Assisted Living and Hospital Loans

Call Scott at Kendall Realty Advisors

(847) 903-7578