Under Sections 221(d)(3) and 221(d)(4) of the National Housing Act, the Federal Housing Administration (FHA) provides mortgage insurance to facilitate the new construction or substantial rehabilitation of multifamily rental properties. Section 221(d)(3) is used by non-profit and cooperative sponsors; Section 221(d)(4) is used by profit-motivated sponsors.

The benefits of this program include loan terms of up to 40 years, competitive fixed interest rates, AAA credit enhancement for tax-exempt bond financed transactions, and eligibility for securitization by Ginnie Mae. There are no rent restrictions or affordable leasing requirements. The loans are non-recourse, allow higher loan-to-cost ratios and lower debt service coverage. The property may include commercial/retail space. For new properties and substantial rehabilitation, the construction loan can convert to a permanent loan upon completion of the building phase. Interest rates are fixed for the construction and the 40 year permanent loan term prior to the start of construction. .

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.