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.
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.
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?