Andrew LaSalla, Principal at LSG Lending Advisors breaks down some of the most frequently asked questions in these short, informative interviews. Find answers to your common HUD loan questions in the below series. If you don't find what you are looking for, don't forget to check out the LSG FAQ directory for even more questions and answers on HUD, Freddie Mac, Fannie Mae, and more.
HUD 221(d)(4) Financing for Multifamily Properties FAQs
HUD 221(d)4) Construction Loan FAQs Transaction
Hi, my name is Andy LaSalla with LSG Lending Advisors. We specialize in healthcare and multifamily financing, and in today’s segment I’d like to speak to you about the HUD 221(d)(4) transaction.
What loan terms does the 221(d)(4) construction loan offer that other loans do not?
The 221(d)(4) construction loan offers a 2-year, interest only period during construction that converts to a 40-year fixed rate.
What is the timing a client can expect from engagement to the closing of the transaction?
The timing varies but is usually between 8-11 months depending the experience of the development team and the complexity of the transaction.
Thank you for your time today in discussing the 221(d)(4) transaction. Please reach out to LSG Lending Advisors at the number below to answer any additional questions you may have, Thank you hand have a great day.
HUD 223(f) Purchase or Refinancing of Existing
Multifamily Properties FAQs
HUD 223(f) Purchase or Refinancing FAQs Transcript
Hi, my name is Andy LaSalla with LSG Lending Advisors. We specialize in multifamily and healthcare financing and today’s topic is the HUD 223(f) transaction.
What is the maximum loan term for a HUD 223(f) transaction?
The maximum loan term for a 223(f) transaction is up to 35 years, or 75% of the remaining economic life of the project.
What are the maximum loan to values allowed for a HUD 223(f) transaction?
The maximum loan to values for HUD 223(f) transactions are 85% for market rate, 87% for affordable, and up to 90% for 90% or greater rental assistance.
For a multifamily property cash to equity takeout, what is the maximum loan to value and are there any restrictions?
The maximum loan to value for a cash to equity takeout is 80%, and there are restrictions with the cash out upon closing. 50% of the cash will be released at closing and the other 50% will be held in an escrow account and released upon completion of non-critical repairs.
Thank you for taking the time today to listen to me regarding the HUD 223(f) transaction. Please contact me at the number listed below and I’ll be happy to answer any additional questions you may have.
Refinancing Options for a High Interest HUD 202 Loan.
Refinance Option for HUD 202 Loan FAQs Transcript
Hi, I'm Andy LaSalla principal of LSG Lending Advisors. We specialize in multi-family and healthcare financing, and today's topic is the HUD 202 transaction.
What loan options are available for borrowers currently in a HUD 202 Loan with high interest rates?
Borrowers that are currently in the section 202 program with high interest rates can refinance through the HUD 223(f) program.
Will the borrower need to extend their current HAP contract?
Most borrowers enter into a new, 20-year HAP contract that is exempt from MARA.
What can the loan proceeds of the transaction be used for?
The proceeds can be used to increase your capital reserves, deferred maintenance, capital improvements, and an unrestricted cash out developer fee up to 15 percent for the improvements.
Thank you for taking the time to listen to the segment on the HUD 202 transaction please contact me at the number listed below and I'll be happy to answer any additional questions you may have. Thank you and have a great day.
What are the differences between HUD transactions
and Agency transactions?
HUD vs. Agency Loan Transaction FAQs Transcript
Hi, my name is Andy LaSalla with LSG Lending Advisors. We specialize in multi-family and healthcare financing and in today's topic we're going to discuss some of the differences between HUD transactions and agency transactions.
What are some of the differences between HUD multifamily apartment financing and Agency Transactions?
The main difference is the HUD insured loan offers a 35 or 40 year fixed rate, 35 year term for refinances or purchases, and up to 40 years for new construction and substantial rehabilitation. Whereas, agency loans offer a shorter fixed period of 3, 5, 7, 10, or 12 years amortized over 30 a year period, and a balloon payment is due when that fixed period ends.
What type of financing is recommended for projects in a portfolio for the long-term?
I would recommend HUD financing if they're going to hold the property long term. This way they get a low 35 year fixed rate and it eliminates future interest rate risk.
Thank you for taking the time to listen to the segment on agency vs HUD financing please contact me at the number listed below with any questions that you may have. Thank you and have a great day.
Frequently asked questions about the HUD 223(a)(7) transaction
for insured multifamily or healthcare projects.
HUD 223(a)(7) Transaction FAQs Transcript
Hi, this is Andy Lasalla with LSG lending advisors we specialize in multi-family and healthcare financing, and in today's segment I'd like to speak to you about the HUD 223 (a)(7) transaction.
What type of borrow qualifies for HUD 223(a)(7) financing?
Borrowers that qualify for this program currently have a HUD insured loan. This allows them to reduce their current interest rate, extend their term, fund any repairs up to $1500 per unit, and increase their replacement reserve.
How long is the transaction process for the 223(a)(7)?
The transaction process is relatively quick for a HUD loan - it is between 60 and 90 days.
What is the maximum term allowed for the 223(a)(7)?
The maximum term is up to 12 years beyond the remaining term; not to exceed the original loan term.
Are there any 3rd party reports required for the 223(a)(7)?
The only third party report that is required is a physical capital needs assessment if one has not been completed in the previous five years.
Thank you for taking the time today to watch this segment on the 223(a)(7) transaction. If you have any further questions, please feel free to contact LSG Lending Advisors at the number below. Thank you.