FHA & HUD Insured Loans

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FHA/HUD

The federal government has a series of loan programs for those with bad credit or a history of foreclosures or bankruptcies to meet a wide range of needs. The Federal Housing Administration (FHA) and the US Department of Housing and Urban Development (HUD) facilitate mortgage lending to support Americans. FHA insured loans are insurance backed mortgage loans that are provided to low-income and bad-credit Americans through FHA-approved lenders. These loans help you borrow money for buying a home that may not be possible otherwise.

If you are looking for FHA/HUD-insured loans, we at Mid-Atlantic Commercial Capital, LLC can assist you in securing loans from the most reputed lenders.

Key FHA/HUD Insured Loan Programs

The most important programs under the FHA/HUD Insured loan program are as follows:

223(F) - Acquisition and Refinancing of Multifamily Properties

This program facilitates market-rate properties under any class including cooperatives, subsidized, and affordable housing.

Commercial space must be restricted to 25% of the rentable area
Commercial space must generate no more than 20% of gross income
The maximum loan amount is $75 million
Interest rate remains fixed for the term of the loan

221(D)(4) – Construction or Substantial Rehabilitation of Multifamily Properties

This program allows you to apply for mortgage loans for low to moderate-income and subsidized multifamily properties.

Commercial space must not be more than 25% of the net rentable area
Commercial space must not generate more than 15% of gross income. The limit is up to 30% in Urban Renewal and Opportunity Zones.
Supports new construction and renovation of buildings that meet certain conditions
Supports a single fixed rate for construction interest-only period and for the durable of the permanent loan term
Avails up to $75 million in the loan amount

232/223 (F) Acquisition and Refinancing of Healthcare Properties

This program applies to licensed nursing homes, intermediate care, assisted living, and board and care facilities. The non-resident daycare component must not be more than 20% of the area and 20% of the gross income.

Must be a state-licensed property
Allowed to include a maximum of 25% non-licensed independent living area
Certificate of occupancy must be issued at least 3 years ago
Interest rate is fixed for the loan term
Maximum loan amount for profit purpose is 80% of the loan to value
Maximum loan amount for non-profit purpose is 85% of the loan to value

232 Construction or Substantial Rehabilitation of Healthcare Properties

This FHA/HUD program supports licensed nursing homes, intermediate care, assisted living, and board and care facilities. The commercial space must be limited to 10% of the gross floor area and not generate more than 15% of gross income. This program supports new construction work and renovation of buildings that meet certain conditions.

Follows a single fixed interest rate for the construction period and the loan term.
Maximum loan to value of 75% for assisted living
Maximum loan to value of 80% for other services including skilled nursing

223 (A) (7) Refinancing of Properties with Existing FHA-Insured Debt

This FHA/HUD-insured loan program supports multifamily and healthcare assets that already have FHA-insured loans.

Follows fixed loan term
Maximum loan amount is the least of the original principal balance from the first insurance
Maximum loan amount for subsidized property type is 100% of the refinancing cost with 1.05 times the minimum debt service coverage
Maximum loan amount for all other property types is 100% of refinancing cost and 1.11 times the minimum debt service coverage

There is no option for equity cash-out under this program.

Are you seeking FHA/HUD-insured loans? Whatever your goals, we at Mid-Atlantic Commercial Capital, LLC can assist you through our vast network of reputed lenders. We cater to the needs of our clients through a large portfolio of loan programs. You can give us a call right now at (540) 825-9800 or send us an email at ckearns@maccllc.com for detailed information on FHA/HUD mortgage loans.