Loan Programs

Multifamily Housing

Refinance of HUD Loan

The HUD 223a7 program provides a streamlined process for borrowers with existing properties insured by FHA to lower their interest rate, increase the loan term and replacement reserves, and complete minor repairs ($1,500 per unit, not subject to Davis-Bacon) that extend the economic viability of the project. If an existing prepayment penalty exists, proceeds from the a7 refinance can fund those prepayment expenses.

Starting in 2017, borrowers may be able to significantly lower their debt service with HUD's new "Green" initiative without completing capital improvements. Please see the Energy Efficiency PDF to the right of this page for more information.

As part of the streamlined process, borrowers are not required to secure a new appraisal, market study or environmental assessment, however a new PCNA (Property Capital Needs Assessment) is typically required as part of the application.

Typically, the a7 program takes 60-90 days from start to finish.


Creative Solutions

BLC combines our direct HUD programs with our Advisory services to arrive at finance solutions for apartment owners and developers nationwide. We are a direct lender, not a broker or intermediary

We have extensive experience in underwriting and funding deals for the following property types:

1. 100% Market Rate Projects

2. Section 8 (HAP Contract) Properties

3. Mixed Use (Maximum 25% commercial)

4. Historical Tax Credits Transactions

5. Low Income Housing Tax Credits

6. Non-Profit Affordable Housing

Features

  • Streamlined Process
  • Non-Recourse
  • 60-90 Day Process
  • Complete Capital Improvements

Documents