New Construction or Substantial Rehabilitation HUD Section 221(d)(4)
This program provides non-recourse, assumable construction and permanent financing for affordable/broadly affordable, as defined above, new apartments or substantial rehabilitation of existing apartments.
Acquisition or Refinance Loan HUD Section 223(f)
This loan program provides non-recourse, assumable financing for the purchase or refinance of existing affordable, as defined above, multifamily or age-restricted properties.
Qualified properties are existing multifamily properties with at least 5 residential units. Properties with certificates of occupancy issued 3+ years prior to application must document a pattern of stable occupancy at not less than 85% and stable operating results. Properties with certificates of occupancy issued less than 3 years prior to application must evidence a minimum DSCR consistent with the programmatic requirements for a period of three consecutive months prior to loan endorsement.
Refinance of Existing FHA Insured Loan HUD Section 223(a)(7)
This FHA program allows borrowers with existing FHA insured loans on affordable properties to lower the interest rate, extend the term, fund project repairs and evaluate the replacement reserve. For-profit and not-for-profit borrowers may apply for FHA mortgage insurance under this program.
FHA multifamily mortgage insurance is an important source of debt financing for projects participating in RAD. Transactions include the acquisition, refinance and rehabilitation of PBRA or PBV-assisted projects. HUD is making certain allowances for processing RAD transactions that utilize FHA insured debt to accommodate and expedite these transactions.