These programs are not direct loan programs. FHA insures loans originated by private, FHA-approved lenders. Prospective project sponsors/mortgagors are responsible for finding a HUD-approved lender to make a loan and submit an application for commitment to the HUD State/Area Office with jurisdiction over the property location.
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), provides mortgage insurance to facilitate the development of rental housing. The 221(d) program is FHA's program for the new construction or substantial rehabilitation of multifamily rental properties. Section 221(d)(3) is used by nonprofit and cooperative sponsors; Section 221(d)(4) is used by profit-motivated sponsors.
Benefits under all these mortgage insurance programs:
• Long-term, fixed rate financing (up to 40 years for new and rehabilitated properties and up to 35 years for existing properties without rehabilitation)
• Federal guarantee can result in AAA rating on financing
• Eligible for securitization by the Government National Mortgage Association (Ginnie Mae)
• Nonrecourse loans
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), provides mortgage insurance to facilitate the refinancing or purchase of rental housing that does not require substantial rehabilitation. The Section 207/223(f) program is FHA's program for insuring such properties which may or may not require minor repairs and improvements.
The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), provides mortgage insurance to facilitate the development and refinancing of nursing homes, intermediate care facilities, board and care homes and assisted living facilities. The 232 program is FHA's program for the new construction or substantial rehabilitation of these residential health care properties. In addition, under Section 232 pursuant to Section 223(f), these properties may be purchased or refinanced without substantial rehabilitation although repairs and improvements are permitted. A mortgage insured under Section 232 or 232/223(f) may include the cost of major movable equipment for operating the health care facility.
