FHA/HUD section 223(F)
Multifamily and Mixed-Use cash-outs, refinance and acquisition
Eagle Commercial Funding Capital Corporation is a Direct Private Commercial Lender in 45 States and partners with several capital providers.
No upfront fees, tax returns or income verification
- Competitive Fixed Interest Rates (our fee built into interest rate)
- 1% mortgage insurance premium at closing then 0.6% annually on decreasing loan amount
- Term: 35 years fully amortizing
- $5 to $100 Million+
- Eligible properties: market rate properties of any class, cooperatives, affordable or subsidized housing. Construction or substantial rehab completed 3+ years before application to HUD; student housing allowable but cash flows cannot assume multiple rents from one unit and rents must be in line with market rate multifamily comps.
- Subsidized: (at least 90% Section 8): 87% LTV, 1.11X DSCR, 90% acquisition to cost & 80% cash-out
- Affordable: (with minimum set-aside 15+ years): 90% LTV, 1.15X DSCR, 87% acquisition to cost & 80% cash-out
- Market Rate: 85% LTV, 1.18X DSCR, 85% acquisition to cost & 80% cash-out
- Repair and rehab limitations: up to $15,000 times local cost factor (190% to 270%); repairs not 50%+ of two building systems; electrical, plumbing, mechanical, building envelope and structural
- Commercial space limited to 25% of net rentable area & 20% of gross income
- 0.5% rate lock deposit refunded at closing
- Low fees and points
- Prepayment and assumption negotiable
- Occupancy requirement: 85% average occupancy for the past 6 months (steady or trending up); for projects within 3 years of construction/major rehab completion: no occupancy requirement; for example if 70% occupancy supports loan amount requested; start underwriting 2 months prior but loan takes 6+ months to close
- 680+ Credit
- Strong borrower/sponsor liquidity, net worth, financials and experience
- Single asset, special purpose LLC, for profit or non-profit
- Escrows: taxes, insurance and mortgage insurance premiums escrowed monthly; capital needs reserve maintained with monthly deposits to HUD guidelines (minimum $250/year) Mortgage insurance premium: due to HUD at closing 1% and 0.6% annually thereafter; 0.25% to 0.35% for affordable and subsidized properties; 0.25% for Energy Star Certified properties.
- HUD application fee: 0.30% of estimated loan amount due with application
- Third party reports: appraisal, environmental & capital needs assessment
- Timeline: typical application submitted 45 to 60 days of engagement; 60-90-days to HUD commitment, and 30-45 days to close
- To submit your online loan request, please click the blue GET STARTED Link for your PRE- APPROVAL Term Sheet within 48 business hours for qualified borrowers.
- No tax returns, income verification, upfront fees, credit cards, Social Security Numbers or credit checks are required for PRE-APPROVAL.