Especially in this time of market turbulence, Berkadia remains a leader in the commercial real estate industry. Much of our success is credited to the Berkadia advisors who work hand-in-hand with clients, ensuring they understand what the state of the economy means for their future investments. We continue to monitor market trends and news updates and are committed to providing the most up-to-date counsel to our investors.
Despite market volatility, there are still opportunities for CRE investors, especially through FHA/HUD financing in the Multifamily Housing and Affordable Housing sectors.
Tell Me Something Good:
While construction lending from banks continue to tighten with each passing day, FHA-insured lending for new construction of multifamily projects remains open for business. At Berkadia, we are one of the leading providers of FHA/HUD new construction/permanent financing in the country, and a perfect partner for your next project.
221(d)(4) Deal Highlights:
- Up to 85% LTC Construction to Permanent Funds
- Interest Rate Lock Before Construction
- Ability to float rate down (IRR)
- Fixed Rate and Non-Recourse
A few weeks ago, members of Berkadia FHA/HUD attended and spoke at the Eastern Lenders Association regional conference. Matt Sato, VP and Deputy Chief Underwriter of Berkadia FHA/HUD provided an update on the Northeast HUD Region Construction Administration with a concentration on the Heavy 223(F) program. Due to roadblocks encountered by HUD as it relates to recent Heavy F submissions, the panel provided direct guidance to the pertinent MAP Guide Chapters and industry best practices.
Contact your local Berkadia FHA/HUD expert to learn more!
All Eyes on Affordable:
A key takeaway from the Eastern Lenders Association was the focus on the demand for Affordable and middle-income Housing. HUD is focused on the production of more sub-rehab of existing Affordable deals and new construction of Affordable and middle-income projects throughout the region.
What’s Next: Rent and Income Limits Forecast
Each year, the Department of Housing and Urban Development (HUD) releases Multifamily Tax Subsidy Project (MTSP) Income Limits for each county across the country which plays a critical role in determining the rent and limits for assisted housing programs.
This year, HUD intends to release 2023 median family incomes along with the Multifamily Tax Subsidy Rent and Income Limits on or around May 15, 2023. Berkadia’s Research experts explored projected 2023 Rent and Income Limits in 10 key markets ahead of the announcement. Click here to view the report and get in touch with an advisor to find out estimates relevant to your investment goals.
-Kevin Kozminske, Senior Managing Director, Mortgage Banking – FHA/HUD