HUD Insured Loans
HUD Insured loans are available for the acquisition or refinancing of 5+ unit multifamily properties and are a great financing option for borrowers looking for maximum leverage and longer fixed rates and terms. There are no income or rent restrictions under Section 223(f) unless otherwise required by a project based HAP contract or other regulatory agreement. HUD FHA 223(f) insured mortgages are non-recourse with no market – economic or population – restrictions. Such loans are advantageous because, among other things, because they are non-recourse, do not required personal guarantees and offer low fixed rate, assumable loans.
For more than a decade Mr. Aldover has represented borrowers in HUD-insured loans for commercial, multifamily and senior housing projects totaling well over $100 million. During that time, he has worked with HUD attorneys and staff in Los Angeles, San Francisco, Phoenix and Washington, D.C..
While the scope of work can vary with each transaction, we generally review the closing documentation, participate in due diligence (including health care matters, environmental site assessment, property condition report, title insurance, land surveys, corporate and lien searches), review title and survey reports, deliver opinions and coordinate closing with lender and HUD counsel.