Multifamily Borrowers Benefit From New HUD Lending Policies


Borrowers continue to be impacted by the coronavirus as many have been informed that several banks, bridge lenders and CMBS programs are unwilling to close on their loan commitments or have dramatically changed the loan terms. If leading market indicators continue to worsen, it would not be surprising to hear that more warehouse lines for bridge lenders are canceled or funding capacity is reduced. History shows us that if you need financing during uncertain times, balance sheet and fund lenders can be good sources of debt, but the most reliable source is generally government agencies. Government agency programs such as Freddie Mac or Fannie Mae programs will likely continue to capture the majority of multifamily financings, but borrowers must become aware that of all the agencies, HUD programs will always offer the most proceeds, the most leverage and the longest loan term. By accessing the HUD programs referred to as 221(d)(4) and 223(f), borrowers can access 35- to 40-year fully amortizing loans, avoiding future interest rate risk as well as term/balloon risk in a down market.

Read more via Commercial Observer here.


Featured Posts
Recent Posts
Archive
Search By Tags
No tags yet.

© 2019 by The Zegans Law Group PLLC. All Rights Reserved   |  Privacy Policy  | Terms of Use | Disclaimer

    Attorney Advertising

 

                                                                    website by LZ Design

  • Grey LinkedIn Icon
  • Grey Yelp Icon
  • Grey Google+ Icon