Boston, MA · Member since 2012 · 52 posts · 9 votes
Hello,
I did some research and this seems like a good way to go for multi-family financing. Does anyone have any more information on FHA apartment loans? What are the requirements, any advice would be great! Thanks
Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
13y
Have you tried googling it at all? I did a quick search and it looks like they're mainly used for higher price points ($2M+) and/or refinancing.
From what I read this didn't sound like a feasible option for something small, like purchasing a $500K 6-plex since you're looking at 3+ months to close and loads of paperwork. If you're looking to refi such a property, it might be worth the time/effort or if you're looking to purchase a more expensive property where the seller is willing to wait up to 6 mos before closing.
Investor · Los Angeles, CA · Member since 2013 · 32 posts · 3 votes
13y
Originally posted by John A.:
Hello,
Does anyone have any more information on FHA apartment loans?
"Section 223(f) insures mortgage loans to facilitate the purchase or refinancing of existing multifamily rental housing." So first things first, this is not an FHA/HUD loan, because HUD does not lend money, FHA provides insurance on the loan allowing the lender to sell a security to fund the loan. So while FHA/HUD underwrites and approves the loan they do not fund it.
In addition, Seeing as you still need around 20% down, I don't see the real benefit of this route. I am curious also if you are required to live in one of the units like a traditional FHA for 4 or less units.