Apartment Lender Apartment Loan Pricing

FHA 221(d) 4 rates are great right now!

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FHA 221(d)4 New Construction

FHA 221(d)4 New construction loans are being funded by FHA but the total amount of new construction funding is much smaller than the 223(f) refinance funding.  Rates at about 1.25 percent higher than 223(f) rates which are about 5% currently.

The cost of qualifying for a FHA new construction loan  exceeds most other financing programs since the developer must pay for working drawings, about $30,000 in lender required reports and an FHA exam fee of $3 per $1,000 of mortgage request.  The contractor must be able to bond a fixed construction price using Davis Bacon Prevailing local wages.      

The typical FHA borrower that use the FHA 221(d)4 program ofter is a repeat client and the transactions are normally in excess of $5,000,000 due to the costs of preparing for closing of the loan.

FHA allows a maximum loan of 83.33% of cost for market rate properties and slightly higher for affordable rental housing.  They also require an operating deficit fund and a 4% working capital letter of credit or cash deposit. Basically the equity requirement even after net out BSPRA (Deferred Developer Profit) equals or exceeds 20% at this time.

Union Labor Pension Fund Debt

In some cases we can lower your debt cost if we work with a Union Labor Pension Fund to purchase the GNMA C.O. and the developer uses all union labor to build the property.

Its a win win for the owner and the labor, Economic Stimulus the old fashion way "From the workers on up"

Check out FHA 221(d)(4) for your next apartment development.

FHA 221(d)(4) or FHA 221D4

The top apartment lending program available today is the FHA 221D4 program.

90% loan to cost

1.11 to 1 debt service coverage 40 years plus construction loan term

Non-recourse, Assumable and low fixed rates for construction and permanent loan

Check out the best lending program available today the FHA 221D4 new construction apartments.

FHA 221(d)4 Apartment Construction Loans

Rates on FHA loans have dropped in the recent weeks. Most deals are being locked at note rates between 6% and 7%. It could be a good time for a refinance or to start a construction loan.

FHA New Construction

FHA will finance up to 90% of cost non-recourse for a low fixed rate for 40 years.

Contact Scott Kendall (837 903-7578 or Charles Kendall(773) 294-7074 we have been financing apartments with FHA 221(d)4 since 1985, over $500,000,000 in loans.