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Karen Schimpf
  • Lender
  • Nat'l Commercial Mtg Lender - Round Rock, TX
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852
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Multifamily Advantages and Disavantages of a HUD Loan

Karen Schimpf
  • Lender
  • Nat'l Commercial Mtg Lender - Round Rock, TX
Posted Jun 25 2015, 16:14



HUD loans make sense on $3MM+ due to the cost. A HUD loan allows a multifamily unit to cash flow very well!

HUD's loan to value is 83.3%. The advantage of a HUD, has the highest LTV in the market, the rate is in the mid to high 3's, , the rate and term is fixed for 35 years, it is non recourse, assumable, no defined financial capacity requirements, no geographic restriction, and no minimum population requirements.

The disadvantages are longer process times (4+ months is typical), higher fees, mortgage insurance premiums, annual audited operating statements required, replacement reserve escrows required, HUD property inspections required, and owner distributions limited.

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Wishing You the Best,

Karen Schimpf
Commercial Capital, Ltd.
p: 512-650-8630
www.linkedin.com/in/karenschimpf/
blog: http://bizloansconnections.com/

website: http://applycommercialloans.com

P.S. When the Bank Says No, Come to Me to Get Your Deal Closed. I specialize in Small Business Administration Loans (SBA), Foreign National Loans, and Private Money Loans. I help entrepreneurs attain financing for their business or project. I BRING MONEY FROM AROUND THE COUNTRY TO LOCAL MARKETPLACES INSURING THE MOST LIKELIHOOD OF CLOSING. The key is placing the borrower with the lender that most suits that borrower's strengths. I do it better than anyone. Give me a call today at O:512-650-8630 to get your loan closed.

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