HUD multifamily finance is the best kept secret in the industry. Many believe that only affordable/subsidized/rent restricted properties qualify, but this is not the case. 🧵
HUD MF financing is often the best option for medium to long term holders that are looking to build generational wealth. Not only do HUD’s programs offer the best terms in the business, they also offer the lowest rates as well. forbes.com/sites/forbesre…
HUD’s 221(d)(4) program for the construction or sub rehab of market rate multifamily housing includes terms such as: 85% LTC, non-recourse, 40 year term + construction period, fixed rate, fully amortizing
The terms only improve if the project is affordable. Across the board, a HUD construction loan will have a rate noticeably lower than a bank loan. Further, a HUD construction loan will roll right into permanent financing upon final endorsement of the project.
HUD’s 223(f) program for the acquisition or refinance of multifamily housing similarly provides great terms such as: 80% LTV on cash out transactions, non-recourse, 35 year term, fixed rate, fully amortizing, min DSCR 1.176 (market rate)
If you have an asset that you plan to hold for 3-5+ years, this program should certainly be considered. #HUD #Multifamily #finance #CRE #REtwit
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