HUD Programs

Affordable Housing

Refinance of FHA Loan

The HUD 223(a)(7) program allows borrowers with existing FHA insured loans to lower their interest rate, extend the term, fund project repairs and increase the replacement reserves under an abbreviated timeline and for low costs.

HUD defines Affordable Housing as projects that meet the following requirements:

  1. Rent and income restrictions must be imposed, monitored and enforced by a governmental agency for at least 15 years after construction, and
  2. Either
    1. a recorded Regulatory Agreement requiring the project to meet at least the minimum LIHTC restrictions of 20% of units at 50% of area median income (AMI), or 40% of units at 60% of AMI, with economic rents (i.e. the portion paid by the residents) on those units no greater than LIHTC rents, or
    2. a Project-Based Section 8 contract for 90% of the units.

Projects do not need to use LIHTCs to qualify for affordable underwriting so long as they meet the above requirements.

No new appraisal, market study, or environmental report is required for 223(a)(7) loans in order to minimize processing costs. Repairs of up to $1,500 per unit can be included in the loan amount, and Davis-Bacon wage requirements do not apply to these repairs.

Creative Solutions

Bedford Lending is a nationwide leader in providing finance solutions for affordable housing projects throughout the United States. No project is too big, small, or complex. We have successfully worked on projects funded by, including, or requesting:

  • Section 202 Loans
  • Section 236 Loans
  • 9% & 4% Low Income Housing Tax Credits ( LIHTC )
  • New Market Tax Credits
  • Tax Exempt Bond Financing
  • Flex Subsidies
  • HAP Contracts
  • RAD Conversions
  • PBV / PBRA Vouchers
  • IRP Decouplings

Often times, we need to meld subordinated loans or grants with the programs to fill critical equity gaps. Our direct HUD programs can be used to fund capital improvements, replacement reserves and to add supportive services. In addition, we have extensive experience repositioning 236 properties that may need to be decoupled and/or maturing through either the Markup to Market or Markup to Budget programs.

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