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HUD Section 207

HUD Section 207

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

Multifamily Loans
Cooperative Housing - Section 213 Existing Multifamily Rental Housing - Sections 207/223(F)
Housing Finance Agency Risk-Sharing - Section 542(c) Manufactured Housing - Section 207
Rental & Cooperative Housing - 221(d)(4) Rental Housing - Section 207
Rental Housing for Urban Renewal and Concentrated Development Areas - Section 220 Risk-Sharing Program - Qualified Participating Entities (QPE) - Section 542(b)
Senior Housing - Section 231 Supplemental Multifamily Loans - Section 241

FHA Special Needs Housing Loans

FHA Special Needs Housing Mortgages
Assisted Living Conversion Program (ALCP) Demonstration Program for Elderly Housing for Intergenerational Families
Emergency Capital Repair Program (ECRP) Supportive Housing for the Elderly Program - Section 202
Supportive Housing for Persons with Disabilities - Section 811

FHA Health Care Mortgages

FHA Health Care Mortgages
Hospital Facilities - Section 242 Residential Care Facilities - Section 232

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