HUD / FHA Multifamily Loans
We are a HUD Licensed, MAP-approved lender with in-house underwriting, origination, and servicing.
The US Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) do not make loans. Rather they facilitate the guarantee of the US government to assure the repayment of the loan. By securing a HUD/FHA loan, you are asking HUD/FHA to take on the full faith and credit guarantee of the US government in place of your own guarantee excepted only by any fraud you may commit.
Conveyed in an alternative manner, Uncle Sam takes your place so the interest rate and terms applied to your loan are those the US government would secure. This is usually materially better than what you could obtain in the open marketplace. You will pay a modest spread but the end results are vastly improved terms and interest rates, which only benefit you.
Because the US government is taking on this guarantee, great effort is required to document and process these loans, such as HUD commercial loans. This is why you pay a fee, in part to HUD for its efforts, and in part for the guarantee of the US government. HUD multifamily apartment loans can be used for new construction, rehabilitation of a distressed property, the acquisition of an existing property, or the refinancing of existing debt.
At loan closing, we as the underwriter will fund the loan and secure a long-term investor who will accept the interest and terms of the mortgage. Bonneville Multifamily performs the entire loan servicing for all HUD loans we originate, so you will always know who you are working with.
FHA Section 223(f)
Purchase or Refinance Insured Financing FHA Section 223(f) — it is important to remember that the purpose of this loan is to offer affordable FHA multifamily financing for housing projects, and the goal of this program is to provide loans for the acquisition or refinance of existing market rate and/or affordable multifamily rental housing projects nationwide.
FHA Section 223 (a)(7)
Streamline Refinance Insured Financing FHA Section 223(a)(7) — this mortgage insurance program’s goal is to offer refinance loans for existing market rate and/or affordable multifamily rental housing projects currently financed with an FHA loan. Having an FHA 223(a)(7) loan is an opportunity for property owners to take advantage of today’s low interest rates, and possibly reduce mortgage insurance premiums.
FHA section 221 (d)(4)
By virtue of our expertise and experience in the multifamily industry, and the trust we have built with our clients, we became a HUD/FHA multifamily lender.
With our extensive background in FHA multifamily financing services, you can find the right funding for your projects.