HUD Multifamily Financing | Apartment Building Loan
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HUD Multifamily Financing | Apartment Building Loan

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EMYH Funding offers unbeatable terms on the best Multifamily financing program available today. DON'T overpay for your HUD Loan. Allow EMYH to close your transaction and provide an unbelievable......

EMYH Funding offers unbeatable terms on the best Multifamily financing program available today. DON'T overpay for your HUD Loan. Allow EMYH to close your transaction and provide an unbelievable experience.

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  • 1. H U D M U LT I FA M I LY 305-924-6200 andresgarcia@emyh.org HUD Multifamily Financing Purchase or Refinance Unbeatable 4.25% Interest Rate 35 Year Amortization Non-Recourse Cash Out to 80% LTV Up to 92.5% CLTV (Purchase) 85% Rate and Term Refinance No Appraisal and Expedited Processing****If refinancing an exiting HUD Multifamily Loan
  • 2. H U D M U LT I FA M I LY 305-924-6200 andresgarcia@emyh.org HUD Loan Processing Time Line1) Preliminary information sent to EMYH Funding for initial analysis: - Current Rent Roll - 3 Years Operating Statements + YTD - Site Description with Unit Composition - Location Map, Site Plan & Floor Plans - Acquisition Price or Existing Debt - Any repairs to be included in the Mortgage - Market Survey2) Within 5 - 7 Business Days - Lender will complete its preliminary analysis and offer pre qualification and terms of the loan3) Within 3 - 4 weeks (from original submission date) - Letter of Engagement Issued by Lender - Application Fee and 3rd Party Fees Collected - After Feasibility is confirmed Third Party Reports are ordered (Appraisal, Physical Needs Assessment, Environmental Phase One, etc.)4) Within About 2 Months - Lender completes Underwriting and Submits FIRM Application to HUD5) Within 5 - 6 Months - Lender prepares closing documents and proceeds to closing
  • 3. H U D M U LT I FA M I LY :• EMYH _1_ Funding 305-924-6200 andresgarcia@emyh.orgLoan Amount $1,000,000 MinimumL o a n Te r m Maximum term of 35 yearsAmortization Loan will fully amortize over termMinimum DSC 1.18xM a x i m u m LT V a) 85% of appraised value; b) Loan amount that would achieve a debt service coverage ratio of 1:18 to 1.0; c) Refinancing: 100% of outstanding debt plus transaction costs and proposed repairs. (If an equity takeout is being requested, then the loan amount may be 80% of the project’s appraised value under this loan criterion if that amount is greater than the cost of the refinance.); d) Acquisition: 85% of the acquisition price plus transaction costs and proposed repairsFixed Rate YesAdjustable Rate NoEligible Property Multifamily *(see Notes for details)Eligible Borrower Single-asset entityAssumable Loan is assumable, subject to HUD approval and payment of an assump- tion fee and related transaction expensesTa x a n d I n s u r a n c e E s c r o w s Taxes and insurance are required to be escrowed monthlyReplacement Reserves Replacement reserves are required in accordance with HUD guidelines; the amount is determined in conjunction with the third-party engineer reportCommercial Space Less than 20%Recourse Non-recourseRequired Reports Appraisal, reduced physical needs assessment and environmental screenPrepayment Negotiable. Typically two-year lockout with 8% penalty in third year, reducing 1% each succeeding year
  • 4. H U D M U LT I FA M I LY t Funding _1_ EMYH 305-924-6200 andresgarcia@emyh.orgSupplemental Loans NoPricing 4.125% as of 8/5/2011 (Please call for updated rate)Rate Lock After acceptance of FHA commitment and prior to closing (contact to dis- cuss early rate lock options)Fees and Expenses a) Lender Application Fee: $5,000; Due at after preliminary analysis is completed b) HUD Application Fee: .3% of Loan Amount; 50% refunded at closing c) HUD Insurance Premium: .5% Paid at closing d)Processing Fee: 1.75% e) Third party report costOrigination Fee 1% Paid to EMYH Funding at Closing*Notes a) Market rate, moderate-income and subsidized properties b) Existing projects, at least three years old, with no more than minimal required levels of repair and with no substantial rehabilitation within the past three years c) No rent control d) Student housing is not excluded, but multiple rents from one unit will not be underwritten e) Limitation on commercial space: No more than 20% of the net rentable area and 20% of effective gross income
  • 5. H U D M U LT I FA M I LY 305-924-6200 andresgarcia@emyh.org HUD Bridge Loan ProgramEligible Properties: Multifamily properties in strong, stable markets with experienced sponsorsNationwide Geographical FocusLoan Amounts: $2 Million - No MaximumLoan Term: Up to two yearsInterest Rates: Floating Rate over 30 Day LIBOR. Rate varies based on loan term DCSR and LTV/LTC.Amortization: Typically interest only.Maximum Loan to Value: Lesser of 80% "As-Is" value or 75% Loan to Appraised Value upon stabilization.Maximum Loan to Cost: 90% including costs associated with renovations.Minimum DCSR: 1.0x, interest reserves required for lower DCSRsPrepayment Provision: Generally permitted.Recourse: Typically Non-Recourse with standard carve-outs.Replacement Reserves: RequiredMinimum Occupancy Requirement: None This bridge loan product is specifically designed for cases where borrower is waiting for HUD financing but must close before loan processing can be completed.