Under Section 223(f) of the National Housing Act, the Federal Housing Administration (FHA) provides mortgage insurance for the refinance, acquisition, and moderate rehabilitation of existing multifamily rental properties. Insured loans may be utilized to directly fund the payoff, acquisition, and repair costs, and may also be utilized as substitute credit enhancement for tax-exempt revenue bonds, providing a AAA rating.

To qualify under Section 223(f), it must be three years from the property’s completion of construction or its last substantial rehabilitation. The property may include commercial/retail space. The program allows the repairs required by the engineering inspection and any other repair work proposed by the owner to be included in the loan amount. For this reason, the program works especially well for properties that are in need of physical upgrade

Other advantages of the program include loan terms of up to 35 years fully amortizing and no rent restrictions or affordable leasing requirements. It offers competitive fixed rates, AAA credit enhancement for tax-exempt bond financed transactions, and eligibility for securitization by Ginnie Mae. The loans are non-recourse, allow higher loan-to-value ratios and lower debt service coverage.

The unique demands and processes of HUD/ FHA multifamily financing are generously offset by the advantages. Additionally, HUD’s MAP Program (Multifamily Accelerated Processing) coupled with PNC ARCS’ streamlined internal procedures and staff of FHA dedicated professionals bring greater speed and efficiency to meet the accelerating needs of today’s market.

With PNC ARCS’ acknowledged leadership in multifamily financing and now the addition of FHA financing for multifamily properties, you can be sure of a fast, smooth, reliable execution from application, through closing, and beyond.

Beyond the benefits of any specific program, PNC ARCS’ expertise and unwavering commitment to extraordinary customer service are what set us apart from the rest. And with specialists in affordable housing, senior housing, manufactured housing communities, mezzanine/bridge financing, FHA multifamily, and capital markets, we can help meet your most critical financial and timing needs. No one delivers more.