FHA AFFORDABLE LOAN PROGRAMS
MJC understands the complexities of affordable housing and its requirements to integrate multiple sources of funding and has extensive experience in structuring financing transactions that include both 4% LIHTC, 9% LIHTC, tax exempt bonds, and RAD. MJC participates with FHA as an approved Housing Tax Credit "Pilot" lender which allows for expedited processing times to accommodate tax credit timelines.
Consistently a top FHA lender in Texas and HUD's Southwest Region, MJC has closed in excess of $3.1 billion in multifamily loans over the last five years including over $2.2 billion in new construction loans for both market rate and affordable properties using HUD's 221(d)(4) program. Click on the links below to see loan program summaries and details:
221(d)(4) New Construction & Substantial Rehabilitation
Construction and permanent financing for new family or senior apartments as well as substantial rehabilitation for existing apartments.
- Expedited processing times to accommodate Housing Tax Credit timelines
- 40 year fully amortizing loan
- loan amount up to 90% loan to cost
- interest rate fixed during construction and 40 year term
- combination construction & permanent loan
- non-recourse
- assumable
- fixed prepayment
223(f) Acquisition & Refinance
Purchase or refinance of existing apartments.
- up to 35 year fully amortizing loan
- loan amount up to 85% loan to value/purchase price (80% cash out)
- low fixed interest rate
- non-recourse
- assumable
- fixed prepayment
223(a)(7) Refinance
Refinance of existing FHA insured loan in order to lower the interest rate, extend the term, and fund needed repairs.
- up to 40 year fully amortizing loan
- loan amount up to the original principal balance of existing loan
- low fixed interest rate
- non-recourse
- assumable
- fixed prepayment
241(a) Supplemental Loan
Second mortgage for the purpose of financing additions, repairs, replacements, and energy conservation for existing FHA insured loans.
- Term must be coterminous with first underlying FHA first lien, up to 40 years
- loan amount up to 90% of replacement cost of entire project
- non-recourse
- assumable
- fixed prepayment
Loan Modification | interest rate reduction (IRR)
Modification of existing FHA insured mortgage for the sole purpose of reducing the interest rate.
- term, amortization, and loan balance stays in place
- minimal fees & expenses; no third party reports required
- non-recourse
- assumable
- fixed prepayment
Benefits of FHA Finance
