Previously, multifamily developers had to wait three years after the Certificate of Occupancy was issued before being eligible to refinance with HUD with the 35 year amortization loan program.

The Wait Is Over.

This week, HUD announced the elimination of the three years of waiting. If you have a bank financed construction loan on your multifamily and are needing to look at permanent financing, you need to call Howell Investment Finance now.  

1. Great Terms

All recently constructed multifamily projects or substantially rehabilitated properties could be eligible for the great HUD financing terms:

• 85% LTV, or 80% LTV with cash out
• Low fixed-rates
• 35 yr amortization
• 35 yr Term
• Cash out
• Assumable
• 1.17 dscr market rate or 1.11 dscr affordable

2. Lowest interest rates

The interest rates keep dropping between the Fed cutting interest rates 0.5% yesterday plus the 10 year T-bills being at their lowest level means its time to refinance and lock in the lowest rates for the long term.

3. I Can’t Refi Because of my Pre-Payment Penalty

That may be the case, however, Howell Investment Finance is refinancing properties that still had 8 years left on the pre-pay. They are still able to refi with HUD and reduce their payment dramatically even while paying off the pre-pay. When you refinance with HUD, you can keep your bank deposits wherever you like as HUD doesn’t want the deposit accounts, now that should make your banker happy.

4. Low Interest Rates Won’t last Forever

With everything changing quickly, the low interest rates won’t be around forever. What happens to interest rates after the elections is anyone’s guess as rates could go either way depending who gets elected. Also, with these low rates, demand will be rising and waiting to find out if you qualify could mean longer loan processing time and you could miss out on locking in rates for the long term.

If you are looking to refinance your new construction or a substantially rehabilitated multifamily property, you need to visit with Howell Investment Finance in Ames, IA. They specialize in finding the right financing for you. Give them a call today at (515) 233-8228 to learn about the range of available loan options and request a free quote. To get an idea of the type of projects financed, visit the website. In addition to Ames, the firm proudly serves Des Moines, West Des Moines, Ankeny, Cedar Rapids, Iowa City, Cedar Falls, Dubuque, and the Quad Cities.