A Potpourri of HUD Program Ponderings
Here are several of our observations on recent HUD matters that we’d like to share.
simsmfdev
CHEERS! HUD’S NEW CNA FORMULA CHANGES CUT CLUTTER AND COMPLEXITY
HUD multifamily lenders, like most of our conventional lending colleagues, underwrite deals based on metrics like loan-to-cost (LTC), loan-to-value (LTV) and debt service coverage (DSC).
REFINANCING? WE DON’T NEED NO STINKING REFINANCING! OR DO YOU?
We borrowed – and slightly amended – that classic line from Blazing Saddles, and before that, The Treasure of the Sierra Madre, to make this point.
HELP US HELP YOU! TOP 10 THINGS WE NEED TO KNOW FOR EFFECTIVE DEAL SCREENING
HUD-insured multifamily construction loans offer terrific terms: 40 year amortization, high loan-to-cost ratios, low debt service coverage ratios and non-recourse provisions.
WANNA GO GREEN? HUD WILL SHOW YOU THE MONEY!
Last month HUD announced a new program – funded through the Inflation Reduction Act – that will assist affordable housing properties become more energy efficient, implement new cutting-edge environmental technologies and combat the effects of climate change.
CROSSING THE BRIDGE TO HUD
The Section 232/223(f) program is HUD’s primary refinancing program for existing skilled nursing homes, assisted living facilities and memory care centers. It provides long-term, fixed-rate financing with a maximum 35-year amortization.
DAVID WHO?
We’re pleased to bring back our “Top 10” segment, but in the interest of reaching a younger demographic, we’ve eliminated the reference to the former late-night talk show host in our lead.
SIMS MORTGAGE FUNDING YEAR IN REVIEW
Have you ever heard the saying may you live in interesting times? That was the watchword for us last year, as higher interest rates and increasing construction costs posed a significant challenge to our deal pipeline.
WE’RE BAAAAACK… SMF CLOSES A $5,243,000 LOAN THAT PRESERVES AGAIN AN AFFORDABLE, EDERLY HOUSING COMMUNITY IN PA
In November, Sims Mortgage Funding, Inc. (SMF) closed a $5,243,000 HUD-insured refinancing loan for Majestic House, a 74-unit, age-restricted affordable community located in Tamaqua, PA.
HUD MAKES MULTIFAMILY LIFE MORE LIQUID AFTER LOAN CLOSING
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?