HUD Does Market Rate Housing, NOT just Sec 8

One of the most common comments Howell Investment Finance hears from sponsors is “I don't want to get a HUD loan and have the government tell me who I have to rent to or what limits I have to charge on my rents.” Nothing could be further from the truth about HUD financing for multifamily and senior housing properties.

While it's true, HUD does lend on properties that include Section 8 Housing, what most sponsors don't realize is HUD financing is also for Market Rate and Workforce housing properties.

Howell Investment Finance financed a $30 million HUD project in Eastern Iowa that is 100% Market Rate and HUD had no problems accepting the Market Rate of that property. In fact, HUD has suggested ways to maximize the rents to assist in increasing the rents of the units. 

Types of HUD Loans

There are three types of HUD loans. 

1. Market Rate Housing
2. Workforce Housing
3. Affordable (Section 8) Housing

• 35-year term so you may never need to refinance.
• 35-year amortization so you will greatly increase your properties cash flow.
• HUD mortgages are non-recourse, no global finances needed.
• 80% LTV with possible unrestricted cash out at closing.
• HUD mortgages are assumable, could be valuable when you want to sell with the rising interest rates right now.
• HUD will not require deposit accounts, so you can keep those with your current Bank.
• Refinancing with a HUD mortgage will open up your lending limit with your current Bank, which could allow you the possibility of purchasing an additional property to your portfolio.

If you own a multifamily or mixed use property with a value of $4 million or more, you really need to call Howell Investment Finance and find out how a HUD loan can benefit your property. With interest rates to increase, call Howell Investment Finance today and see if you qualify to increase your cash flow and forget about rising interest rates.

To see if a HUD loan is right for you, contact Howell Investment Finance in Ames, IA. They have been serving the West Des Moines, Ankeny, Cedar Rapids, Ames, Sioux City, Iowa City, and the Quad Cities for several years. They offer a variety of financial solutions, including multifamily, mixed-use, and senior housing financing. Call (515) 233-8228 or visit them online to schedule a consultation.