FHA Loan Programs

FHA Loan Programs

FHA Loans For Apartments, Healthcare Properties, Mobile Home Parks and More

The Federal Housing Administration, better known by its initials FHA, is part of the Department of Housing and Urban Development, better known as HUD. HUD is the largest provider of mortgage insurance in the United States. FHA loan programs provide long-term, non-recourse, fixed-rate loans for the property types and loan types listed below. If you prefer, we have produced a FHA Loan Programs Video Overview.

  • Multifamily acquisitions
  • Apartment construction
  • Apartment renovation
  • Multifamily refinancing
  • Nursing home construction
  • Seniors housing construction
  • FHA construction to permanent loan
  • FHA apartment loans
  • Affordable housing construction
  • Affordable housing acquisition
  • Elderly housing construction
  • Assisted living facility construction
  • Critical access hospital construction
  • Acute care hospital construction
  • Streamline refinancing for above
  • FHA construction loans
  • FHA multifamily loans

Why Apartment Financing America

As the exclusive mortgage broker for HHC Finance, an FHA MAP and LEAN lender and licensed Ginnie Mae issuer, we provide all the financing our clients need at very low rates. Coupled with four decades of expertise and you get financing that makes deals more successful, with

  • Numerous financing options
  • Certainty of execution
  • An unwavering focus on your success
  • Unparalleled lending expertise

Advantages of FHA Loan Programs

As a Government Sponsored Enterprise (GSE) and the largest provider of mortgage insurance in America, FHA loan programs offer a number of advantages over conventional, CMBS and even other GSE loan programs, many of which are unique, available only with FHA insured mortgage loans.

  • FHA loan programs are always available, regardless of market volatility
  • FHA multifamily loans can be used for both market rate and subsidized apartments
  • FHA affordable housing loans may be combined with LIHTC tax credits
  • FHA loan programs offer borrowers the lowest interest rates available in the market
  • FHA offers the only 40 year, non-recourse construction loans in the world
  • All FHA loan programs are non-recourse to the borrower, with standard carve-outs
  • FHA places more underwriting emphasis on the collateral rather than borrower
  • Up to 83% loan to value for acquisitions and refinancing and 90% for construction
  • Minimum loan as little as $1,000,000 with no maximum loan amounts
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FHA MAP Program

In response to erratic, and at times dysfunctional capital markets, FHA developed the FHA MAP program (which stands for Multifamily Accelerated Processing) to provide access to FHA loan programs on an expedited or accelerated basis. As the availability of alternate sources of capital has fluctuated greatly, at times being very limited, multifamily owners and developers turned to GSE loan programs, most notably FHA loan programs, to originate new multifamily loans for acquisition, construction and rehabilitation, along with providing a ready sources of capital to refinance their existing multifamily, manufactured housing, seniors housing and healthcare projects. FHA Loan Programs play a critical role as a source of mortgage financing that is always available, regardless of market volatility.

FHA Lean Program

In addition to the FHA Multifamily Accelerated Processing MAP program, HUD developed its Lean process in 2008 to originate FHA Section 232 loans. FHA 232 loans help finance nursing homes, assisted living facilities, and board and care facilities. The Lean process only applies to FHA 232 loans. Unlike MAP, Lean is not an acronym, but rather is a methodology model developed by Toyota to increase efficiency by reducing waste.  The Lean process reduces inconsistencies and inefficiencies in FHA loan processing. In addition activities that do not add value are explored using value stream mapping.

FHA TAP Processing

Non-Section 232 projects will continue to be processed by HUD approved MAP lenders under the Multifamily Accelerated Processing (MAP) program or by the local HUD Field Office in the case of Traditional Application Processing (TAP). Whichever process is used, applications for HUD/FHA mortgage insurance are assembled and underwritten by FHA Approved Lenders before being submitted to HUD for processing of the Firm Commitment.

Federal Housing Administration

The Federal Housing Administration, generally known as FHA, is an agency of the federal government that insures mortgage loans made by FHA-approved lenders throughout the United States and its territories. FHA loan programs insure mortgage loans on single family and multifamily homes, including manufactured homes, hospitals and other healthcare properties. FHA is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.

FHA is the only government agency that operates entirely from its self-generated income, costing the taxpayers nothing. Revenue from the mortgage insurance premiums which are paid by borrowers under FHA loan programs is captured and used to operate the program. FHA is a huge economic stimulus to the country via home and community development, which trickles down to local communities in the form of jobs, building suppliers, tax bases, schools, and other forms of revenue.

History of FHA

Congress created the Federal Housing Administration (FHA) in 1934 and the FHA became a part of the Department of Housing and Urban Development’s (HUD) Office of Housing in 1965. When the FHA was created, the housing industry was, for all intents and purposes, extinct due to the Great Depression.

  • Two million construction workers had lost their jobs.
  • Terms were difficult to meet for home buyers seeking mortgages.
  • Mortgage loan terms were limited to 50 percent of market value, with a three to five year repayment schedule ending with a balloon payment.
  • America was primarily a nation of renters. Only 4 in 10 households owned homes.

During the 1940s, FHA loan programs helped finance military housing and homes for veterans returning from service in WWII and their families after the war. In the 1950s, 1960s and 1970s, the FHA helped to spark the production of millions of units of privately-owned apartments for elderly, handicapped and lower income Americans. When soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s, FHA’s emergency financing kept cash-strapped properties afloat. The FHA moved in to steady falling home prices and made it possible for potential home buyers to get the financing they needed when recession prompted private mortgage insurers to pull out of oil producing states in the 1980s.

By 2001, the nation’s home ownership rate had soared to an all time high of 68.1 percent as of the third quarter that year. The FHA and HUD have insured over 34 million home mortgages and 47,205 multifamily project mortgages since 1934. FHA currently has 4.8 million insured single family mortgages and 13,000 insured multifamily projects in its portfolio. In the more than 60 years since the FHA was created, much has changed and Americans are now arguably the best housed people in the world. HUD has helped greatly with that success.

FHA Loan Case Studies

Multifamily Acquisition Loan FHA 223f Loan Program

FHA 223F Apartment Loan Killeen Texas

Apartment Financing America provided a 35 year, fixed rate, FHA 223f apartment loan to finance the acquisition of the 240 unit Fort Hood Apartments located in Killeen, Texas.