Non Recourse Multi-Family Loans
With the recent deterioration in the housing market across the United States, the federal government, through FHA, has made non-recourse loan programs available for multi-family housing. A number of factors are taken into consideration when qualifying for these programs.
Location
The property is located in a declining or blighted area, or economically distressed community.
Net Income to Debt Service Ratio
The net income to debt service ratio will determine the loan to value ratio.
Occupancy
The current occupancy rate of the property must meet a certain minimum, usually at least 60%.
In addition, the FHA also provides non-recourse loans to cover the cost of repairs and/or improvements to the property. The amount of the non-recourse loan is determined by the net income to cost of repair/improvements ratio.
