Acquisition and Refinancing of Multifamily Properties
3 W. Main St, Suite 103
Irvington, NY 10533
Acquisition and Refinancing of Multifamily Properties
Only properties with existing FHA multifamily insured loans
Fixed-rate – determined by market conditions
For-profit or not-for-profit single asset entity
Non-recourse, subject to standard carve-outs
The lesser of:
Maximum of 12 years beyond in-place financing term, and is fully amortizing
Limited to 25% of net rental area and 20% of effective gross income
Flexible – best execution typically has a combination of lockout and prepayment penalty for 10 years and is fully assumable subject to HUD approval
Minimum of $250 per unit per year or as determined by a Project Capital Needs Assessment (PCNA); initial deposit, if warranted, will be required at closing
.25% to .50% due at closing and .25% to .50% annually thereafter
.15% of requested loan amount due with submission of application
HUD Environmental Review Online (HEROS) is required
PCNA may be waived on a case-by-case basis
Firm commitment issued 30 calendar days after HUD’s receipt of complete application; closing 45-60 days
3 W. Main St, Suite 103
Irvington, NY 10533