business financeEvery business owner knows the importance of investing in their company’s upkeep. A good impression will last a long way. Thus, companies choose to upgrade their offices regularly. If you are in the rental business, such upgrades and investment is also a must albeit a bit more differently.

Renovating your apartment for rent to attract new tenants and increase the value of your property is common. Wanting to have your semidetached property rehabilitated to live more comfortably is also acceptable. However, renovation and construction itself require a significant amount of money. Bonneville Multifamily Capital shares that this is the part where you should consider the Federal Housing Authority’s (FHA) Multifamily Financing, specifically the FHA 221(d)(4). 

What is FHA 221 (d)(4)? 

The United States Housing and Urban Development (HUD) is the guarantor of FHA 221(d)(4) loans. As explained by the HUD website itself, this loan type is the “industry’s highest-leverage, lowest-cost, non-recourse, fixed-rate loan available in the business”.

Such loan types can help insure mortgage loans to moderate to low-income families, elderly, and the disabled who wishes to construct or rehabilitate their multifamily rental or cooperative housing. Aside from the competitive rates, the program also allows the long-term loan of up to 40 years. 

How can you be eligible for such loan types? 

The FHA 221 (d)(4) is designed for rehabilitation of both for-profit and non-profit properties. This includes detached, semi-detached, row, walk-up, and elevator-type multifamily properties. Commercial properties (with limitations) are also eligible. Because the loan is designed to help middle to low-income individuals, single-asset, and bankruptcy remote entities are welcome.

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The HUD released a checklist to help potential applicants know whether they are eligible for the loan or not.

Stop putting off that long overdue rehabilitation your property needs. With the HUD FHA loan, you would be able to live comfortably or increase your property value with the help of the government. Make sure to utilize it.