HIT Financing Programs

Federal Housing Administration

The Trust provides construction and permanent mortgage loan financing for the new construction or substantial rehabilitation of multifamily and senior housing apartments as well as health care facilities that are insured by the Federal Housing Administration (FHA). The FHA insurance insures investors against loss on mortgage defaults.

FHA uses approved lenders to prepare, process and submit loan applications using its new Multifamily Accelerated Processing (MAP) Program. Final underwriting and approvals continue to rest with FHA. FHA generally allows 90% of replacement cost for programs related to new construction and rehabilitation with minimum debt coverage ratio of 1.11. There is no lease up requirement prior to final endorsement.

The Trust will provide competitive interest rates for construction and permanent financing and will assist the mortgage banker in structuring the financing to meet any unique needs requested by the developer including flexible prepayment options, longer construction terms and step-up interest rates.