Fannie Mae’s Multifamily Mortgage Business offers a 7-year variable-rate financing option with an embedded cap, and an option to convert to fixed rate. This program provides low-cost financing, convertible to fixed-rate financing, and the maximum interest rate is set at rate lock. Eligible property types include conventional, affordable housing, seniors housing, student housing, and manufactured housing properties. This program does loans for acquisition or refinance.
Purpose
Section 207 protects lenders by insuring them against losses from loan defaults. The primary role of the Section 207 program is to provide high quality, reasonably priced multifamily rental housing for the middle class.
Eligible Uses
Section 207 mortgage insurance can be used to finance the substantial rehabilitation or construction of properties with at least five units. A property is eligible for Section 207 mortgage insurance if the sponsor can demonstrate that the project is financially self-sustained. There are also LTV and DSCR limitations. The mortgage is limited to 90% of the appraised value.
Eligible Borrowers
Borrowers who are eligible include commercial real estate investors, developers, builders, and others who fulfill the HUD requirements for mortgagors.
FHA Multifamily Mortgages
FHA Special Needs Housing Loans
FHA Health Care Mortgages
| FHA Health Care Mortgages | |
|---|---|
| Hospital Facilities - Section 242 | Residential Care Facilities - Section 232 |
