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Gershman Mortgage and Multifamily Housing Financing

At Gershman Mortgage, we offer commercial mortgage loans for the new construction and substantial rehabilitation of multifamily rental of cooperative housing for market-rate, low-to-moderate income families and the elderly.

New Construction and Substantial Rehabilitation

These projects are made possible by being eligible for HUD-insured financing under Multifamily Accelerated Processing (MAP), and are available for both profit-motivated and not-for-profit projects.

Section 220

The 220 program is a single construction-to-permanent loan for New Construction and Substantial Rehab of multifamily and elderly apartment properties in urban renewal areas. Interest rates are fixed at closing.  Rates are typically set lower than conventional financing due to the credit enhancement provided by FHA at closing. Commercial space may be up to 25% of the project’s net rentable area and up to 30% of the effective gross income. Read about this offering from Gershman Mortgage in more detail.

Section 220: New Construction and Substantial Rehabilitation in Urban Renewal Areas

Section 221(d)(4)

The 221(d)(4) program is a single construction-to-permanent loan for New Construction and Substantial Rehab of multifamily and elderly apartment properties in urban renewal areas. Commercial space may be up to 25% of the project’s net rentable area and up to 15% of the effective gross income. Read about this offering from Gershman Mortgage in more detail.

Section 221(d)(4): New Construction and Substantial Rehabilitation

Acquisition and Refinancing

Gershman Mortgage also offers refinancing for existing multifamily rental housing. Projects that were originally financed with conventional or FHA insured mortgages are eligible for up to 35 years of fixed-rate financing, whether for-profit, or non-profit.

Section 223(f)

The 223(f) program is a financing program designed for acquisitions or refinancing of existing multifamily properties. This program can be used to finance repairs or for equity take-outs for a 35-year term. Commercial space may be up to 25% of the project’s net rentable area and 20% of the project’s effective gross income.

Learn more about this type of mortgage refinancing.

Section 223(f):  Acquisition and Refinancing

Section 223(a)(7)

The 223(a)(7) program is a financing program designed for the refinancing of existing multifamily properties that are already in the FHA Insured Loan Program. The program is used to lower debt service as well as finance repairs.

A mortgage insurance premium is paid annually based on the outstanding principal. Premiums range between .25% and .50% depending on the project.

Learn more about this type of mortgage refinancing.

Section 223(a)(7):  Refinancing of Existing FHA Insured Loan

Section 241(a)

The 241(a) program is a financing program designed to insure a second mortgage to finance repairs, additions, and improvements of existing multifamily apartments, that already have an existing FHA-insured mortgage. A mortgage insurance premium is paid annually based on the outstanding principal. Premiums range from between .25% and .95% depending on the project.

Learn more about this type of mortgage refinancing.

Section 241(a):  Financing for Supplemental Loans (Second Mortgages)

Getting Started

New Construction / Substantial Rehab of Apartment Projects – HUD 221(d)(4)

  • Preliminary architectural plans, if available
  • Location documentation
  • Breakdown of number of units by type
  • Land cost for acquisitions
  • Management company experience if available
  • Owner-elected repairs
  • Planned amenities (for example – pools, clubhouses, unit finishes, etc.)

Acquisition and Refinancing of Existing Apartment Projects – HUD 223(f)

  • Description of Project
  • Location documentation
  • Financial statements for the last three years
  • Breakdown of number of units by type and monthly rent
  • Sales price for acquisitions
  • 6 months occupancy history
  • Owner-elected repairs

Contact Gershman Mortgage

If you have any questions, contact Gershman Mortgage today.

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