All Forum Posts by: Kyle Jean

We get this question quite frequently, see below for the official HUD guidance. The age of the property would put it in a safe harbor, however of note you would need an "intrusive" or sometimes called "forensic" addendum to the needs assessment (PCNA) that reviews major building components like the breakers and sewer lines for adequacy.

FHA is higher leverage and longer term than Fannie or Freddie but the biggest downside on an acquisition is the property condition report requirements, which have significantly more scrutiny than other financing options.

Bill Gambardella is about half an hour away and is very good. He's representing one of our borrowers on a New Haven transaction. His firm is Gambardella, Cipriano Gottlieb & Hathaway.  

Arbor has a SFR non-recourse program that may be of interest.

We have done a lot of RAD conversions. Are you converting to PBV or PBRA?

We financed seven large scale MF properties in the Boise/Treasury Valley area a few years ago. All projects are doing very well, however I agree with Matt - the market now is mature, there's a lot of supply (big and small), and that saturation compounded with current rates makes it tough to find even a two or three family property with up-side. I know Post Falls has seen some activity recently so may be worth looking into pockets around the Spokane MSA. 

Hi John, congrats, looks like it's taking shape. Best of luck with the project, Lynn is a strong area for sure.

What type of multifamily? 2-4 families or more traditional garden style, etc? The HUD 221d4/223f programs would do that leverage however it's only economical for projects of significant size (~30+ units).

Yes a Fannie or Freddie SBL product could offer 80% depending on market. HUD 223(f) program would also be 85% leverage but soft costs are higher and timing is longer - not very economical for small loan sizes.

Reach out to local apartment management companies in the area. Generally they're more than willing to provide general information based on what they see in the market and their own portfolio.