Share:

Investing in a multifamily property is a great way to increase your rental income while improving your community by offering comfortable and affordable housing options to families in the area. However, finding a traditional mortgage to help you fund the project can be difficult. HUD financing makes it possible for you to become a property owner while reducing the risk that banks associate with the project.

Here are a few benefits of HUD financing:

  • Easier Qualification Requirements: When lending money, banks always assess the risk of the individual requesting the loan as well as the possible risk of failure associated with the business. Even if your credit is spotless, they may not be willing to give you a commercial mortgage loan. Since HUD loans are backed by the federal government, the lender is guaranteed repayment should you default. This added security encourages banks to offer loans more freely and helps you get the money you need.
  • HUD FinancingFixed Interest Rates: While some HUD loans may have variable interest rates, most have fixed rates for the life of the loan. This means that once you receive your loan, the payments will be predictable, helping you create a stable budget month to month. You’ll never have to worry about varying interest rates interrupting your property management budget.  
  • Simple Entry Into the Industry: If you’ve never owned commercial real estate, it can be difficult to break into the industry. Traditional loans are difficult to obtain without extensive ownership histories and experience as a landlord. However, HUD financing makes purchasing an investment property possible. The credit requirements are often lower than average in the market and the amount of money required for your down payment will similarly be lower.  

 

Howell Investment Finance in Ames, IA, is proud to help individuals get the financing they need for their multifamily home and investment properties. Whether you’re new to the industry or are an established commercial real estate owner, let their lending specialists find the best HUD financing options for your project. Learn more online and call (515) 233-8228 to schedule a consultation with their lending team.

tracking