HUD – FHA Apartment Loans Pros vs Cons

HUD – FHA Apartment Loans Pros vs Cons2018-05-27T02:33:10+00:00

Trillium Capital Resources is ready to assist you in analyzing any apartment or multifamily asset for the HUD Apartment Loan programs. Before borrowers decide if the HUD Apartment loan program is right for their asset, it is good to understand the Pros and Cons of the HUD Apartment Loan Program.

For more information on the HUD Apartment Loan Program, visit our FHA-HUD Apartment Loan Frequently Asked Questions page.


PROS:

  • Highest leverage available for Multifamily Assets –  Up to 83.3% LTV
  • 35 Year Terms Available
  • Fully Amortizing
  • Typically the lowest rates in the market
  • No maximum on cash out proceeds

CONS: 

  • Operator disbursements limited to twice a year
  • Longer closing times as compared to other loan vehicles
  • Ownership  annual audits
  • Replacement Reserve requirements

​For more information on the HUD Apartment Loan Program, visit our FHA-HUD Apartment Loan Frequently Asked Questions page.
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