Hud Versus Other Loan-types

HUD AGENCY CMBS LIFECO / OTHER
Asset-Classes Market-Rate Multifamily, Affordable Multifamily Healthcare (ALF, SNF) Market-Rate Multifamily Affordable All Commercial All Commercial
Term 35-40 Years (Non-Recourse) 5-10 Years 5-10 Years 2-10 Years
Interest Rate 3.50% 4.80% 5.00% 3.50%
Non-Recourse Yes Yes Yes ?
Fixed vs. Floating Fixed Fixed or Floating Fixed or Floating Fixed or Floating
Annual Mortgage Insurance Premium 25 - 65BPS NA NA NA
LTV / LTC 85% - 90% 75% - 80% 70% - 75% <70%
Pre-Payment Customizable, No Lockout 10, 9, 8, 7, 6, 5, 4, 3, 2, 1% 1-2 Year Lockout Yield Maintenance 1-2 Year Lockout Yield Maintenance Flexible Pre-Pay Structures
Servicer Greystone Greystone 3rd Party 3rd Party
Target Loan Size $5 - 100MM $1+MM $5+MM $5+MM
Execution 6-9 Months 2-3 Months 2-3 Months 1-3 Months
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QUICK MAP FACTS

  • MAP is a response to a need to modernize and streamline the FHA mortgage insurance program.
  • MAP was created in response to lenders who value FHA mortgage insurance and wanted to see its expansion in the marketplace.
  • The goal of MAP is to establish HUD as the #1 multifamily finance source.
  • MAP strikes a balance between expedited processing and acceptable risks.
  • MAP efficiently utilizes HUD staff resources by balancing workload among the Program Centers within each of the 18 Hubs.
  • MAP recognizes that employees who specialize in a specific program, perform better than those who must work several program areas.
  • The MAP Guide was designed with Field, Headquarters, and lender input.
  • MAP establishes specific norms and timeframes for work to be accomplished.
  • MAP provides consistency of reviews, but flexibility in the administration of FHA program underwriting.
  • MAP accomodates Traditional Processing (TAP) by establishing teams within each Program Center to process non-MAP work, like Section 202/811, Section 223(2)(7), Section 241, Sectino 207 Mobile Home Park, etc.

Primary Map Programs

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Section 221(d)(3) & 221(d)(4)- New Construction and Substantial Rehabilitation for Rental Housing
  • Fixed interest rate (market)
  • Non-recourse & Assumable
  • 5 or more units
  • No cap on the number of units or the loan amount
  • Statutory limits vary by location
  • Construction financing
  • Davis-Bacon wage rates
  • 40-year term
  • LTV (loan-to-value) 90% (up to 100% for nonprofits)
  • DSC (debt service constant) 90% (up to 95% for nonprofits)
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Section 223(f)- Refinance
  • Projects must be at least 3 years' old and remain rental housing for at least 5 years
  • Fixed interest rate (market)
  • Non-recourse & Assumable
  • 5 or more units
  • No cap on the number of units or the loan amount
  • Statutory limits vary by location
  • No Davis-Bacon rates
  • Equity take-outs possible
  • 35-year term or 75% of remaining economic life
  • LTV 85%
  • DSC 85%
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Section 232 & 232/223(f)- Nursing Homes, Intermediate Care Facilities, Assisted Living, and Board and Care
  • Fixed interest rate (market)
  • Non-recourse & Assumable
  • No statutory limits
  • Construction financing
  • Davis-Bacon rates for new construction and sub. rehab.
  • Licensed/ certified by state/ local agency
  • Nursing homes and intermediate care facilities with 20+ beds
  • Assisted living facilities with 5+ beds
  • 40-year term (35 for 232/223f)
  • LTV 90% (85% for 232/223f)
  • DSC 90% (85% for 232/223f)