There are numerous benefits of HUD-insured multifamily loans – they are high leverage, fixed rate, non-recourse and have 35 to 40 year amortizations. All good stuff, but what does HUD require from borrowers after the loan closes?
HUD posted on September 21 their Notice of Funding Opportunity (NOFO) for the Section 202 Supportive Housing for the Elderly Program in Fiscal Year 2022. The highly competitive program - HUD expects to issue only 35 awards nationwide.
The HUD Section 221(d)(4) program provides high leverage, long-term, fixed-rate multifamily financing – 85% of cost and a 40-year amortization. Debt service coverage requirements are a modest 1.17, loans are assumable, and did we mention they also are non-recourse?
Recent volatility in the capital markets has many multifamily housing owners and operators “clutching their pearls” about the availability of financing at reasonable terms and conditions.
HUD recently announced that it will be offering lower MIPs for healthcare loans starting on or about October 1, 2022, the start of the new Federal fiscal year.
Sims Mortgage Funding Year in Review