It provide 35-year fixed-rate fully amortizing loans.

1.176x debt service coverage ratio (DSCR) applies to market-rate properties or LIHTC-restricted properties with rents < 10% below market.

For LIHTC-restricted properties with rents at least 10% below market, the DSCR is 1.15x.

Properties with at least 90% rental assistance contracts have a DSCR of 1.11x.

85% loan-to-value (LTV) applies to market-rate or LIHTC-restricted properties with rents <10% below market.

For LIHTC-restricted properties with rents at least
10% below market, the LTV is 87%.

Projects with 90% or greater rental assistance
qualify for a 90% LTV.

Fixed interest rate

Multifamily projects with a minimum three-year history, comprising detached structures and row houses. Eligible properties include market-rate, low-to-moderate income, and subsidized multifamily residences.

A singular asset entity, whether for-profit, nonprofit or public borrowers.

Maintain an average 85% occupancy in the six months preceding HUD application submission.

Achieve a maximum economic underwriting occupancy of:

1. 93% for market-rate properties (with at least 20% market-rate units or LIHTC units with rents < 10% below market)

2. 95% for LIHTC restrictions covering at least 80% of units at rents at least 10% below market

3. 97% for properties with at least 90% rental assistance or 90% LIHTC set aside with rents at least 10% below market.

Cash-out is permissible when 80% of the value exceeds existing debt plus transaction costs.

However, only 50% of the net cash will be released at closing, with the remaining 50% held in escrow until all required repairs are completed.

A potential waiver is available to reduce the holdback to 25%.

Cash-out is permissible when the value surpasses existing debt plus transaction costs by 80%.

However, only 50% of the net cash will be
disbursed at closing, with the remaining 50%
held in escrow until all necessary repairs are finalized.

A potential waiver is available to reduce the holdback to 25%.

Not Applicable to this loan program

The cost of FHA insurance is set by HUD, and an initial Mortgage Insurance Premium (MIP) of 1% of the loan amount is due to HUD at closing.

For ongoing coverage, annual MIP rates vary: 0.60% for Market Rate Properties, 0.35% for Affordable Properties, 0.25% for Broadly affordable or energy-efficient properties, and 0.25% for "Green" properties achieving energy efficiency standards.