The federal government has a number of non recourse loan programs that are administered through the Federal Housing Administration or FHA.
There are specific programs for single family homes, condominiums and multi-family unit properties. As other capital sources have decreased considerably, borrowers are turning to agency lending for new originations and refinancing of their projects. The primary benefit of FHA is that it is a source of financing that is always available despite the volatility of the market.
We have prepared an overview of the U.S. Department of Housing and Urban Development’s (HUD) FHA apartment mortgage insurance programs to help familiarize FHA loan applicants with these programs.
The FHA Mortgage Insurance Programs are available and may provide the most practical and attractive financing mechanisms for financing the following:
- Section 207 – New constructions or substantial rehabilitation of multifamily manufactured home parks.
- Section 220 – Financing for apartments in urban renewal areas.
- Section 221(d) – New construction or substantial rehabilitation of apartments ( for-profit and not-for-profit borrowers).
- Section 223(f) – Acquisition or refinancing of apartments.
- Section 232 – New construction or substantial rehabilitation of skilled care nursing homes, intermediate care, and assisted living facilities.
- Section 232 – (pursuant to Section 223(f) ) Acquisition or refinancing of skilled care nursing home, intermediate care, and assisted living facilities.
- Section 223(a)(7) – Refinancing of existing FHA insured mortgages to reduced interest rate and/or associated costs.
- Section 241 – Supplemental loan program for rehabilitation or expansion of existing FHA insured apartments, nursing homes and assisted care facilities.
- Section 242 – New constructions or substantial rehabilitation of acute care facilities including critical access hospitals.
FHA mortgage insurance provides one of the most attractive long-term, non-recourse permanent financing vehicles for projects that qualify from both a programmatic and financial perspective. Terms, interest rates, and loan to value ratios vary among programs.
Goverment Single Tenant Non Recourse Financing
- GSA Loan (Federal Government)
- State Government Loan
- County Government Loan
- City Government Loan