
A Potpourri of HUD Program Ponderings
Here are several of our observations on recent HUD matters that we’d like to share.
Here are several of our observations on recent HUD matters that we’d like to share.
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).
We borrowed – and slightly amended – that classic line from Blazing Saddles, and before that, The Treasure of the Sierra Madre, to make this point.
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.
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.
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.
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.
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.
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.
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?