What is Multifamily Accelerated Processing (MAP)?
MAP or Multifamily Accelerated Processing, is a system that establishes national standards for approved lenders to prepare, process and submit loan applications for FHA/HUD multifamily construction financing.Better Financing Starts with More Options$1.2M offered by a Bank at 6.0%$2M offered by an Agency at 5.6%$1M offered by a Credit Union at 5.1%Click Here to Get Quotes
Multifamily Accelerated Processing (MAP) and HUD 221(d)(4) Loans
MAP or Multifamily Accelerated Processing, is a system that establishes national standards for approved lenders to prepare, process and submit loan applications for FHA/HUD multifamily construction financing. By using MAP processing, borrowers and lenders can save significant time during the loan application processing. Lenders that are not approved for MAP processing must instead use TAP, or Traditional Application Processing, which can take somewhat more time. Therefore, it can be extremely beneficial for HUD 221(d)(4) borrowers to chose a MAP lender, especially if they want to close in a hurry.
To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form below and a HUD lending expert will get in touch.
What is Multifamily Accelerated Processing (MAP)?
Multifamily Accelerated Processing (MAP) is a streamlined method and set of national standards for approved lenders to prepare, process, and submit loan applications for HUD multifamily financing. To be approved for MAP, all underwriters employed lender must attend a specialized HUD training session. Once approved for MAP, lenders are typically responsible for preparing most of a borrower’s exhibits, including their appraisal. HUD-approved lenders who are not approved for the MAP program must submit loan applications through TAP, or Traditional Application Processing.
How does MAP help with commercial real estate financing?
MAP stands for the U.S. Small Business Administration's (SBA) Microloan Program. This program provides small loans of up to $50,000 to small businesses and certain not-for-profit childcare centers. The SBA works with intermediaries to provide these loans, which can be used for working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. The SBA does not provide direct loans, but instead guarantees a portion of the loan, reducing the risk to the lender and making it easier for small businesses to get financing. The SBA also provides technical assistance to help small businesses understand the loan process and how to use the funds.
The SBA's Microloan Program can be a great option for commercial real estate financing, as it can provide small businesses with the capital they need to purchase or improve their commercial real estate. The SBA's guarantee also makes it easier for small businesses to get financing, as lenders are more likely to approve the loan with the SBA's backing. Additionally, the SBA's technical assistance can help small businesses understand the loan process and how to use the funds.
What are the benefits of using MAP for multifamily financing?
The main benefit of using MAP (Multifamily Accelerated Processing) for multifamily financing is that it allows approved lenders to prepare, process, and submit loan applications much more quickly than those that use TAP (Traditional Application Processing). This can result in faster loan approvals and closings, which can be beneficial for borrowers who need to secure financing quickly. Additionally, MAP-approved lenders are typically responsible for preparing most of a borrower’s exhibits, including their appraisal. This HUD document provides more information about MAP and the HUD 223(f) Loan Program.
What are the requirements for MAP financing?
The requirements for MAP financing include submitting an underwriting package to the local Multifamily Regional or Satellite Office, which HUD will review for factors such as the borrower’s capabilities, the benefits to the project, and whether there is enough income to repay the loan after project expenses. If the proposed loan is approved, HUD will issue a commitment to the lender. Additionally, lenders must submit an analysis that provides details regarding the sizing of the mortgage, which must be consistent with HUD guidelines, as well as a Sources and Uses statement that is consistent with specified mortgage sizing calculations.
What types of properties are eligible for MAP financing?
MAP financing is a type of commercial mortgage-backed security (CMBS) loan that is typically used to finance larger multifamily and apartment properties. MAP loans are non-recourse and can be used to finance the acquisition, cash-out, or rate and term refinancing of Class A and Class B office properties, traditional high-rises and low-rises, single-story office parks, medical office buildings, and mixed-use buildings. For more information, please see Multifamily.loans and Apartment.loans.
How long does it take to get approved for MAP financing?
Processing a MAP two-stage application can take between 8 to 10 months. Check out our typical loan timetable to learn more.