Commercial Financing

35-40 Year FIXED Rate Apartment Loans.

Rates from 4.95-5.25%!

Cash Out Refi’s to 75% LTV (rate term-85%, construction 83.5%-90%)

Issue: #128

Commercial Loans

Commercial Financing is available for qualified buyers to announce its new apartment construction, rehabilitation and permanent financing product. Via a correspondent relationship with direct HUD servicing companies, we can offer highly leveraged, long term fixed financing options for stabilized properties and ground up construction.

Program Guidelines

Construction and Perm: 

FHA 221(d) provides mortgage insurance for new construction or substantial rehabilitation of rental or cooperative multifamily housing. Construction and permanent financing is available with loan to cost up to 83.5%-90% (100% for non-profits) for a term of 40 years. FHA 

FHA 223(f) offers mortgage insurance for the refinance, acquisition or moderate renovation of existing apartments and housing cooperatives. It offers up to 85% loan to value and a 35-year loan term. 75% For Cash Out Refi.

RHS 538 (USDA) Project must be in a designated “Rural Area,” as defined by USDA-population must be less than 20,000. Same LTV/Amortization options as FHA products listed above. Construction takeout financing available. 

Pricing and General Criteria

221 (D) – Generally a 9 Month process from submission to funding of new construction. Pricing Ranges from 5.75%-5.9% + .45% for Mortgage Insurance. Davis Bacon Wages Required. 

223 (f) – Generally a 6 month process from submission to funding. Pricing ranges from 4.8% to 5.25% + .45% for MIP.

Property Type:

Apartments, senior housing, assisted living facilities.

Loan Amounts:

New Construction: $5,000,000-$100,000,000

Refinance or Purchase: $2,000,000-$100,000,000

Fees:(approx)

Lender Fee: .75%-2%

HUD Fee: 1.3%

We would love to discuss any potential transactions with you, please feel free to contact me at your Leisure.

Call or email me back [email protected] or 570-640-3535

Peter B Gustis – 2013 President of the Commercial and Industrial Council of Reading Berks Association of Realtors. Top Listing Agent and Buyers Representative in Berks County Pa