Apartment Construction Loans

Apartment Construction Loans

The Only 40 Year, Non-Recourse, Fixed Rate Apartment Construction Loans In The World

Apartment construction loans that automatically roll into 40 year, fixed-rate permanent loans at the end of the construction period are one of the reasons we focus our business on GSE agency lending. They are also one of the biggest reasons we are such strong advocates of FHA apartment construction loans. In fact, with very few exceptions, FHA construction loans are the only multifamily construction loans we place.

The typical financing structure for multifamily construction loans includes multiple loans and multiple closings, which means multiple sets of fees. First, you would have a multifamily construction loan along with a closing just for the interim construction loan. During the next 18-24 months you’ll arrange a permanent mortgage, which will take a great deal of time and money. When construction is finished, you’ll have another closing, along with another full set of fees to close your permanent mortgage loan. It’s very possible that your permanent loan had a 30 year amortization period, but a 5 year term to force a slightly lower interest rate. So, five years later, it’s another closing and another set of fees.

That’s three closings, three origination fees, three appraisal fees, three title policies plus incidental fees and expenses and a great deal of time and aggravation in seven years.

Compare that financing structure to an FHA apartment construction loan. The first closing is nearly identical. That’s it. No more fees. The first closing created a 40 year, non-recourse, fixed-rate apartment loan. The 40 year term starts at the end of construction. You avoid two closings and two sets of fees with the FHA apartment construction loan. Additionally, the FHA apartment construction loans we place will likely allow slightly more leverage. FHA apartment construction loans almost certainly offer mortgage rates that are half to a full point lower than other alternatives.

The multifamily construction business is hard enough. Let us carry some of the load for you. You build it and we’ll place the financing. Request a confidential loan quote today and we’ll arrange multifamily construction financing that will make your deal more successful.

Review the summary information about the multifamily construction loans we offer below. Then click through to get more information about the loan program that interests you. Or, request a confidential loan quote and we’ll start carrying that load now.

Apartment Construction Loan Case Studies

FHA 221d4 Apartment Construction Loans

FHA 221d4 apartment construction loans are multifamily construction loans insured by FHA. The FHA 221d4 apartment construction loans are the only non-recourse, fixed-rate construction loans in the world that automatically convert to a permanent 40 year multifamily mortgage loan at the conclusion of the construction period.
FHA 221d4
Maximum Loan 83% of appraisal
Maximum Term 40 years
Interest Rate Changes daily. Click for rates.
Personal Liability Non-recourse
Eligible Borrowers Non-profit borrowers
Inspection Fee 0.5% of loan amount
Application Fee 0.3% of loan amount
FHA 221d4 Apartment Construction Loans Details ยป
Apartment Construction Loans That Need a construction loan for your next project? We offer the only 40 year non-recourse construction loans in the world.