How to Get Financing to Build a Low-Income Housing Project?

In 2008, being hit by the global financial crisis, the U.S. Government funding for low-income housing went into decline nationwide, stalling hundreds of affordable housing development and lending programs. However, today’s market is seeing a resurgence and tax credits have become readily available for affordable housing development. Multifamilyaffordablelending.com brings great financial solutions to leverage your financial strategy for building a low-income housing project.

Multifamily Affordable Lending (MAL) is a Low Income Housing Tax Credits (LIHTC) and a real estate debt finance consulting business that focuses on building and preserving high quality yet affordable multifamily lending programs and low-income housing projects, as well as market rate multifamily properties. If you are looking for affordable financing options to build a low-income housing project in the Northeast, the following funding options may be right for you.

Fannie Mae Multifamily Lending Programs

Being a Fannie Mae DUS lender, we consider this option a great financing solution. A fixed or floating rate is offered for financing acquisition, refinancing or moderate rehabilitation. The payment term ranges from 5 years to as long as 30 years and can be totally amortizing, or entail full or partial interest-only options. These programs also help for first mortgage financing and subsequent supplemental financing or substitution of single assets.

A lot of options are available under this category:

  • Fannie Mae Green Rewards
  • Fannie Mae Affordable Small Loan
  • Multifamily Affordable Housing Preservation; Loan Amount is $1 Million minimum
  • Fannie Mae Unfunded Forward Multifamily Affordable Housing; Loan Amount is $1 Million minimum

Freddie Mac Multifamily Lending Programs

Through this financial solution, you get financing for adjustable and fixed rate conventional and affordable mortgage products. This is particularly helpful for financing the acquisition or refinancing stabilized properties. Some specialized programs can also be availed for the properties in lease-up and value added acquisitions that need short-term funding. The payment term ranges from 5 years to as long as 30 years, and can be totally amortizing, or entail full or partial interest-only options.

Several options are available under this category:

  • Freddie Mac Green Up Plus
  • Freddie Mac Green Up
  • Freddie Mac Affordable Moderate Rehabilitation
  • Freddie Mac Targeted Affordable Housing Preservation Loan Amount is $3 Million minimum

Multifamily Accelerated Processing (MAP)

Multifamily Accelerated Processing (MAP) is the nationwide processing mechanism for the FHA (Federal Housing Administration) multifamily mortgage insurance programs. Since we are a certified FHA MAP lender, the multifamily affordable lending that you get from us, prepares and executes your application for mortgage insurance, while making a recommendation to HUD based on multifamily affordable lending and underwriting processing.

The LIHTC Pilot program is ideal for permanent acquisition and financing with moderate rehabilitation. The eligible properties for this program include currently subsidized or affordable multifamily rental projects having 4%t or 9%  low LIHTCs. The maximum limit for the loan amount is $25 million.

Proprietary Lending

Multifamily Affordable Lending offers proprietary floating and fixed financing for commercial and multifamily properties.  This bridge lending program is for the people looking for interim financing solutions for preparation and/or rehabilitation and transition to permanent term financing. Structured bridge loans are also available to cater permanent financing needs within 12-60 months of closing. This proprietary program lets us make the credit decision ourselves to fund your loans.  The property types it services includes affordable, conventional, manufactured housing and student housing properties. The loan amount limit ranges from $5 million to $20 million.

Apart from these successful financing options, you can also get custom tailored multifamily development financing solutions for your needs and best interests.

 

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