As an approved Multifamily Accelerated Processing (MAP) lender, Highland Commercial Mortgage has been authorized by HUD to originate, underwrite and close FHA insured loans through HUD for both for-profit and not-for-profit borrowers. HCM provides its clients with the added advantage of tax-exempt and taxable bond financing capabilities that can be further supported with tax credits and subordinated debt options.
Our experienced originators guide our clients through all of the options and advise on the merits of each. If you have questions about financing a property, give us a call and one of our originators will personally review your project with you.
Multifamily Housing Programs
New Construction or Substantial Rehabilitation HUD Section 221(d)(4)
This program provides non-recourse, assumable construction and permanent financing for 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 multifamily, affordable or age-restricted properties.
Qualified properties are multifamily properties which are at least 3 years old since final certificate of occupancy; projects must have an average physical occupancy rate of at least 85%.
Refinance of Existing FHA Insured Loan HUD Section 223(a)(7)
This FHA program allows borrowers with existing FHA insured loans to lower the interest rate, extend the term, fund project repairs and increase the replacement reserve. For-profit and not-for-profit borrowers may apply for FHA mortgage insurance under this program.
New Construction or Substantial Rehabilitation
Acquisition or Refinance
Refinance of Existing FHA Insured Loan
HCM provides the complete services to finance an Affordable Housing project in a timely, cost-efficient manner.
Affordable Housing transactions often involve both debt and equity sources of funds and require proper analysis of and coordination. Mortgages, tax-exempt bond financing options, low-income housing tax credits (LIHTC), historic tax credits, new markets tax credits and various government programs for subordinated loans or grants are among the financing tools offered.
HUD defines Affordable Housing as:
a) projects that have a recorded regulatory agreement in effect for at least 15 years after final endorsement; or
b) projects that meet at least the minimum LIHTC restrictions of 20% of units at 50% of the Area Median Income (AMI), or 40% with economic rents (portion paid by tenants) on those units no greater than LIHTC rents; or
c) mixed income projects if the minimum low income unit rent and occupancy restrictions and regulatory agreement meet above criteria.
An experienced HCM Originator can guide our clients through all of the options and advise on the merits of each.