Saturday, October 1, 2011

FHA 223 F under 4% 35 years fixed no balloon!

Apartment loan rates have moved down and now FHA 223(f) 35 year loans from $2,000,000 and up are under 4% fixed and Small apartment Loans from $750,000 to $5,000,000 are well under 5% fixed for up to ten years. This is due to the "TWIST" action by the FED and the EU currency crisis with Greece on the verge of certain default.

This programs is for owners of a few properties with good credit. Cash out loans up to 75% Purchase and no cash out loans up to 80%.

Click here for LOAN PROGRAMS Click here for Rates

Saturday, April 2, 2011

FHA 223(f) Multifamily Loan Rates 4.5% 35 years

FHA 223(f) Loans Rates 4.5% due to the AAA rating of the GNMA securities Loan amount $2,500,000 and up

This program offers the best rate available for apartment loans and allows for refinancing of debt up to 83.33% and cash out loans up to 75% of value. The process takes about five or six months depending on FHA office and cost a little more than FNMA and Freddie Mac for the reports and FHA exam fee ($3 per $1,000).

The borrower must also hold excess cash flow in an account and only withdraw excess cash flow every 6 months.  Annual Audits of income and expenses and balance sheets are also required.

The interest rates and term (35 years) are the main draw.  With FNMA and Freddie Mac Multifamily operations under Government control and their parent company destined for closure, FHA GNMA MBS securities have become the highest rated mortgage backed securities with the lowest rates.   

This program is not for everyone but for large apartment loans you currently save one or more percent over FNMA or Freddie Mac 10 year loans.

FHA 221(d(4 New Construction

FHA 221(d)4 New construction loans are being funded by FHA but the total amount of new construction funding is much smaller than the 223(f) refinance funding.  Rates at about 1.25 percent higher than 223(f) rates which are about 5% currently.

The cost of qualifying for a FHA new construction loan  exceeds most other financing programs since the developer must pay for working drawings, about $30,000 in lender required reports and an FHA exam fee of $3 per $1,000 of mortgage request.  The contractor must be able to bond a fixed construction price using Davis Bacon Prevailing local wages.        

The typical FHA borrower that use the FHA 221(d)4 program ofter is a repeat client and the transactions are normally in excess of $5,000,000 due to the costs of preparing for closing of the loan.

FHA allows a maximum loan of 83.33% of cost for market rate properties and slightly higher for affordable rental housing.  They also require an operating deficit fund and a 4% working capital letter of credit or cash deposit. Basically the equity requirement even after net out BSPRA (Deferred Developer Profit) equals or exceeds 20% at this time.

Friday, April 1, 2011

Apartment Refinance Rates 5% 35 yrs

Agency Multifamily Loan Rates 10 yr 5.80% - 7 yr 5.50%
Small Apartment Loan Chicago 5.95%
FHA 223 (f) 5% $3 M and up 35 yrs

Banks 5-6% 5 years
    follow me on Twitter