Loan Programs

Comprehensive FHA Commercial Loan LendersWhether you’re acquiring, building, rehabilitating or refinancing a multifamily housing or healthcare property, MHF will be your single source to guide you to the most appropriate FHA-insured financing program and assist you through the process to successful closing.

MHF has the capacity and expertise to offer a wide array of FHA mortgage insurance programs for our Borrowers.

Additionally, we have partnered with other Lenders to provide alternate financing options to meet the needs of our borrowers.

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Multifamily Housing

Whether you’re developing or already operating market rate apartments or town homes, MHF offers FHA-insured financing with the rates and terms that improve your Return on Investment.

Affordable Housing

MHF’s expertise helps developers and owners achieve optimal benefit from the FHA-insured financing and rental assistance programs designed to support multifamily housing projects that serve low-income tenant populations.

Skilled Nursing & Assisted Living

When your core business is catering to the needs of seniors, financing is part of a much bigger picture for you. MHF’s experience helps you achieve the deal you need with less risk and fewer headaches.

Hospital

Institutions from small critical access hospitals to large metropolitan medical centers rely on MHF to finance a wide array of needs – from new construction and modernization to straight refinancing.

The following list of programs provides an outline of information on the most requested programs sought by our clients.

Multifamily New Construction/Rehabilitation: FHA Sections: 220, 221(d)(4), 221(d)(3): Up to 40-year, fully amortizing, level payment, non-recourse, assumable, pre-payable loans plus, an interest-only construction period for up to 36 months (with interest payments capitalized into the loan). These programs generally require compliance with wages in accordance with the applicable Davis-Bacon Act regulations. HUD does not monitor or restrict rents or tenants by income for this program unless first restricted by overlying programs such as the LIHTC or Section 8 Rental Assistance programs. This program is eligible for MAP processing.

Streamlined Refinance: FHA Section 223(a) (7): Provides refinancing for properties already insured by HUD under the following Acts: 220, 221(d) (4), 221(D) (3), 223(F), 232, and 241(a). The program typically does not require market studies or appraisals; there may be a requirement for a limited environmental review, and a PCNA report and, a streamlined/modified mortgage credit review will be performed. This Program is MAP-eligible, and its limited processing regime provides for generally expedited processing.

Multifamily Acquisition/Refinance: FHA Section 223(f): Up to 35-year, fully amortizing, level payment, non-recourse, assumable, pre-payable loans. Eligibility requirements include a provision that the project must be at least three years old. HUD does not monitor or restrict rents or tenants by income for this program unless first restricted by overlying programs such as the LIHTC or Section 8 Rental Assistance programs.  This Program is eligible for MAP processing.

Healthcare: New Construction/Substantial Rehabilitation: FHA Section 232: New construction, expansion, or substantial rehabilitation of intermediate care, board and care, residential care, assisted-living and, skilled nursing facilities. This Program does not permit financing for properties charging up-front (“Founders”-type) fees. Up to 40-year, fully amortizing, level payment, non-recourse, assumable, pre-payable loans, plus, an interest-only construction period for up to 36 months (with interest payments capitalized into the loan.) This program requires compliance with wages in accordance with applicable Davis-Bacon Act regulations. HUD does not monitor or restrict rents or tenants by income for this program.

Healthcare: Acquisition/Refinance: Section 232 Pursuant to 223(f): Financing for the acquisition or refinance of intermediate care, board and care, residential care, assisted living, and skilled nursing facilities. This Program does not permit financing for properties charging up-front (“Founders”-type) fees.  No equity take-out is permitted.  Up to 35-year, fully amortizing, level payment, non-recourse, assumable, pre-payable loans.  Eligibility requirements include a provision that requires the property to be at least three years old. HUD does not monitor or restrict rents or tenants by income for this program.

Section 202: Supportive Housing for the Elderly: This Program is a direct loan program from HUD that provides capital advances to developers (traditionally, private, not-for-profits) to finance the construction, rehabilitation, or acquisition of housing assets that will serve as supportive housing for very low income elderly persons, including the frail elderly.  HUD encourages Lenders to refinance selected properties originally financed under this Program under the 223(f) Program.

Section 231:  Housing for the elderly:  New Construction or substantial rehabilitation of rental housing specifically for the elderly or disabled.

Section 213: Cooperative Units: The Section 213 Mortgage Insurance for Cooperative Housing Program insures mortgage loans to facilitate the construction, acquisition, or rehabilitation of cooperative housing projects. These cooperative housing units may be detached, semi-detached, row, walk-up, or elevator-type housing projects consisting of five or more units.  This Program is not eligible for MAP processing.

Section 236/IRP Decoupling: The Section 236 program was designed to stimulate the production of new, or rehabilitated affordable, multifamily housing. The Program provides an interest rate subsidy that effectively lowers the rate of the HUD-insured mortgage made by a private Lender for the life of the loan (some properties also provide Section 8 rental assistance to the tenants). HUD-insured 236 properties are authorized to refinance using MAP processing under either the Section 221(d)(4) or Section 223(f) programs.

OAHP (f/k/a OMHAR):  The Mark-to-Market program reduces currently subsidized rents on privately owned multifamily properties with Federally insured mortgages to market levels and, restructures the existing debt on these properties to sustainable levels based upon the new rents.

Section 241(a): Supplemental Loan Insurance: Section 241(a) insures mortgage loans to finance repairs, additions, and improvements to multifamily rental housing and healthcare facilities with FHA insured first mortgages or HUD-held mortgages. The 241(a) program is intended to keep the project competitive, extend its economic life, and to finance the replacement of obsolete equipment. Insured mortgages finance repairs, additions, and improvements to multifamily projects, group practice facilities, hospitals, or nursing homes already insured by HUD or held by HUD. Major movable equipment for insured nursing homes, group practice facilities, or hospitals may be covered by a mortgage under this Program. Contractors must comply with the prevailing wage requirements under the Davis-Bacon Act. Section 241(a) requires appropriated credit subsidy.  This program is not eligible for MAP processing.