FHA 223(f) Apartment Financing Nashville TN

[Winston Parks]

Hey BP,

My goal is to develop an 8-12+ unit building with myself living on premises. Has anyone used FHA for the land and construction cost of a new apartment building? I have absolutely no experience in building residential apartments (only commercial stand alone), but my research has directed me to FHA, FHA 203k, and FHA223(f). It seems like with the 203k, you can get this loan to cover rehab and/or new construction in multifamily with no more than four units. The language in the FHA 223(f) loans makes me believe that will not cover new construction. If anyone has experience in this area then I would greatly appreciate any guidance. If you are in the Nashville area, I'll even buy you a drink. My goal is to maximize the amount of dwellings I can have on a particular lot, earn rental income, learn how to manage my property, and have a decent apartment in the process.

Thanks in advance!

[Leo K.]

@Winston Parks

Winston, you might want to take a look at 221(d)(4) FHA loan. This loan is specific for the development of new multifamily construction projects.

Min loan size = $2 million

LTV = 90%

Ammortization = 40 years (fixed)

These are really sweet terms but you must have some multifamily/construction experience to get approved. HUD requires you to present your business plan in front of a board of FHA decision makers. If you lack experience you may want to consider partnering up with a builder or a multifamily investor.