FHA HUD 241(a) Multifamily Loan Program
Our FHA HUD Multifamily Loan Benefits
FHA HUD Multifamily Loan rates start as low as 6.03% (as of September 26th, 2023)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Financing up to 85% LTV
• Terms and amortizations up to 35 years
• Long term fixed rates
• Quick pre-approvals with no cost and no obligation
The FHA HUD 241(a) Multifamily Loan program is designed to provide supplemental financing for current HUD borrowers. The purpose of this program is to keep existing multifamily properties competitive in the market. If you are an owner of a HUD-insured multifamily property looking for extra financing to enhance your property with significant improvements, the HUD 241(a) multifamily loan program could be a great option for you. These loans can also be used to add energy-efficient infrastructure to a property, to purchase additional land or to finance construction costs needed to expand a current property. In 2015, the FHA 241(a) multifamily loan program financed a total of $25 million over 974 units. To qualify for this loan program, the borrower must provide at least 10 percent of the total loan cost.
FHA HUD 241(a) Multifamily Loan Program Loan Program Terms and Guidelines
Eligible Properties and Borrowers
Property must be currently insured by a HUD loan
Maximum loan amount is the lesser of
- 90% of a new construction project for for-profit entities and 95% for not-for-profit entities
- Up to 90% of the property’s net operating income (including the first mortgage payments)
- The cost level that will not exceed HUD’s maximum insurable amount for the project
In addition, the DSCR of the property should hit at least 1.11x
Term and Amortization
Length of term is generally commensurate with the first mortgage.
Fixed at closing
Various different options.
Loans are assumable subject to HUD approval and a fee of .05% of initial HUD note
Loan is non-recourse with standard “bad-boy” carveouts
Mortgage Insurance Premium
MIP is generally .95 percent of the loan amount. Some properties may qualify for between .25-.35 percent.
Loans typically take about 20 weeks from start to finish.
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