Will Fannie Mae, Freddie Mac, and HUD be around in the future?

One of the most frequently asked questions I get asked is “What’s the future of Fannie Mae, Freddie Mac, and HUD. Are these commercial mortgages going to survive? What about the privatization of these I hear in the news?”

Each new administration always has changes to make, so every 4 or 8 years, similar questions have been asked to Howell Investment Finance, however, this new administration seems to want more changes than the past administrations have proposed.

First, lets do a little Finance 101. In the multifamily and senior housing, Fannie Mae, Freddie Mac, and HUD do not actually lend the dollars for the mortgages. They each only insure the Borrower should they default on the loan. Therefore, they have no dollars to be in jeopardy of being cut from the Federal budget. These commercial mortgages don’t cost the US taxpayer dollars, however, they generate billions of dollars for the US government.

The Fannie Mae, Freddie Mac, and HUD multifamily and senior housing departments are extremely large financial cash producers for the government. Howell Investment Finance is constantly in touch with each of the entities and their officials to see what is coming down the road. Each entity has said the same thing, since they are such a cash generator yielding billions of dollars for the US government, they do not see these commercial mortgages going away. In fact, they all have said they look for improved lending terms and other frequently asked for improvements. 

Why would you want to finance your multifamily or senior housing property through Fannie Mae, Freddie Mac, or HUD? For starters, they are non-recourse, assumable, 30+ yr amortizations, 1-3 yrs interest only and cash out are possible, and you can lock in a 10+ yr fixed interest rate.

If you are looking for an increase in cash flow of your apartment or senior housing property, you need to call Howell Investment Finance now to get started. Even after your loan closes, Howell Investment Finance stays involved if you ever have any loan serving questions, they are only a phone call away.

Howell Investment Finance in Ames, IA specializes in commercial loans obtained through HUD, Fannie Mae, and Freddie Mac. Howell Investment Finance works with a strong network of commercial lenders from coast to coast to assist sponsors with buying and refinancing a range of commercial investment properties. If you’re ready to learn more about commercial real estate financing, including how Fannie Mae, Freddie Mac, or HUD financing can benefit you, Howell Investment Finance will assist you through the process! Call (515) 233-8228 or visit their website. In addition to Ames, the company serves Ankeny, Cedar Rapids, Des Moines, West Des Moines, Sioux City, Davenport, and Iowa City. Be sure to “Like” us on Facebook.