FHA Multifamily Loans

HUD Seismic Assessments: What You Need to Know

HUD Seismic Assessments: What You Need to Know

One of the parts of the HUD loan application and approval process is getting a HUD seismic assessment, which is needed if your HUD 221(d)(4) project is located in seismic zones 3 or 4. Seismic zones 3 and 4 (based on 1997 UBC seismic zone maps) are generally located in areas including all of California, large amounts of Alaska and Hawaii, some Oregon, Washington, and Nevada, and a small amount of Tennessee, Kentucky, Illinois, and Arkansas. 

What is the Federal Housing Administration's (FHA) Role in Multifamily Debt?

What is the Federal Housing Administration's (FHA) Role in Multifamily Debt?

The Federal Housing Administration (FHA), founded in 1934, is a U.S. government agency under the U.S. Department of Housing and Urban Development (HUD). The main purpose of the FHA is to insure residential real estate loans. While many of the FHA's loans focus on individual homebuyers, the FHA also provides loans for multifamily builders and developers, including it's popular HUD 221(d)(4) loan program. 

Do HUD/FHA 221(d)(4) loans qualify for Ginnie Mae securities?

Do HUD/FHA 221(d)(4) loans qualify for Ginnie Mae securities?

The Government National Mortgage Association, otherwise known as Ginnie Mae, issues mortgage-backed securities, which are "backed by the full credit and faith of the U.S. government." These are based on FHA loans, which include HUD/FHA 221(d)(4) loans, as well as loans issued by the Department of Veterans Affairs (VA). 

What are the terms and amortization of HUD multifamily construction loans/financing loans?

What are the terms and amortization of HUD multifamily construction loans/financing loans?

During construction, HUD multifamily construction loans are fixed and interest only (for up to 36 months). This is followed by an additional 40 years of fully amortized, fixed-rate payments. Altogether, there is a maximum term of 43 years, including construction.

Are the interest rates fixed with FHA 221(d)(4) loans?

Are the interest rates fixed with FHA 221(d)(4) loans?

One of the major benefits of a HUD/FHA 221(d)(4) loans is the fact that they have incredibly competitive interest rates. But are these interest rates fixed or variable? Let's take a look. 

Who is eligible to reside in HUD/FHA 221(d)(4) properties?

Who is eligible to reside in HUD/FHA 221(d)(4) properties?

If you're considering building or renovating a multifamily residential property with a HUD/FHA 221(d)(4) loan, you might be wondering if it restricts or limits the kinds of residents that can live in the development. And, in pretty much every case, the answer is no. 

How do I apply for FHA multifamily construction loans/financing?

How do I apply for FHA multifamily construction loans/financing?

If you're interested in getting financing to construct or renovate a multifamily residential property, getting an FHA/HUD 221(d)(4) loan can be one of the most cost effective ways to do so. But, to get an FHA/HUD 221(d)(4) loan, you'll need to do significant preparation.