Once the COVID-19 pandemic hit and the Shelter in Place orders were given, many lenders closed their lending on commercial real estate. Investment properties can be a large and stable source of income, however, the uncertainty of the effect had lenders screeching to a halt. 

HUD Remained Open For Business

What about the other lenders?

Fannie Mae and Freddie Mac are still lending, however, they have increased their loan requirements, which may knock some sponsors out due to the increased reserve accounts needed at this uncertain time.

CMBS stopped lending totally at the time, however, they are stepping back into the market now. The most likely loans with the least volatile property type is multifamily. 

What type of properties will HUD finance?

HUD finances the following types of properties:

• Multifamily
• Mixed-use
• Healthcare

What are HUD’s typical loan parameters?

• 35 yr term
• 35 yr amortization
• non-recourse
• assumable
• 80% LTV

What about construction loans?

Construction loans paused early on, however, they are also being looked at depending on the market need and the specific property information. HUD’s construction loans could lend up to 85% LTC with 40 year amortization and a 40 year term. 

Investment properties can increase your cash flow. To get started, you’ll need the right financing plan. For over 25 years, Howell Investment Finance has helped investors take those necessary steps as they put their clients first with HUD, CMBS, Fannie Mae, and Freddie Mac loans. They're based in Ames, IA and provide commercial real estate mortgages across the entire state of Iowa. To schedule an appointment, call (515) 233-8228. For a complete list of their financing services for multifamily, senior housing, office buildings, and retail properties, visit their website.