HUD proposes 25 bps annual MIP for multifamily loans

HUD’s proposed MIP reduction is now official! Across the board, all multifamily loans (including existing and construction projects) will have a lowered 25 bps annual MIP. Learn more. #HUD #AffordableHousing #MulitfamilyFinance #CRE #CapitalMarkets #WalkerDunlop

Did you know that smaller banks are behind some of the largest construction loans in South Florida? Whether it is mixed-use developments or luxury condominiums, more regional and community banks are providing developers with millions in financing to transform emerging neighborhoods and reshape the region’s skyline. This trend gained momentum after the pandemic, even in the face of higher interest rates, as banks saw an opportunity to benefit from the migration of high-income earners to the area. Private lenders have long played a significant role in this space, and despite increased competition, these lenders and banks have found ways to work together on several high-profile projects. However, questions remain about whether challenges such as staffing shortages, limited inventory, rising insurance costs and the increasing price of materials could slow this momentum. For now, banks appear confident, continuing to go all in on select asset classes across the region. Read the full exclusive story >> bit.ly/4oemAmS

 MBP successfully facilitated a $1.5M loan with a cash-out component on a fully stabilized multifamily property in Los Angeles, CA. MBP was able to secure a lender that was willing to underwrite to a 1.2x DSCR and a 30-year amortization, maximizing the cash out in comparison to other lenders. The 5-year loan had no origination fee and will also be interest only for the full term. MBP specialized in debt and equity placement for residential, construction, bridge, and permanent loans throughout the nation. This deal was closed by Christian Bloom.

Keely Downs shares smart, HUD-compliant ways to bring new capital into your project in her latest piece for Multifamily & Affordable Housing Business. From preferred equity to PACE and 241(a) loans, she breaks down what works and what to watch out for. 📖 Read the full article: https://lnkd.in/gsRb6_Tg #HUDFinance #MultifamilyHousing #AffordableHousing #RealEstateStrategy

Bridge lending solutions are designed for sponsors who move quickly and think long-term. From multifamily lease-ups to single-family rentals (#SFR), Arbor Realty Trust’s bridge loan programs provides flexible financing and helps borrowers secure: ✅ Speed and certainty of execution ✅ Interest-only payments ✅ Loan terms of one to three years Learn more about bridge loans and why partnering with Arbor is the right strategic move: https://lnkd.in/gs_Ey2Mq #ArborRealtyTrust #BridgeFinancing #Multifamily

Too often, borrowers are told to “just find the best rate.” But in real-life construction lending, rate is just one piece of the puzzle, especially with so many competitive rates and lenders in the market. Want to actually finish your project on time and on budget? → You need a lender who understands your timeline → Who communicates clearly and early → Who makes funding predictable, not a guessing game If it’s hard to get answers now, it’ll be harder once construction starts and the clock is ticking. I always tell people: the best lender isn’t the one who quotes lowest. It’s the one who helps you move forward without headaches and surprises. What’s one quality you look for in a lending partner (beyond cost)? _______________________________________________ I help make residential construction smarter, faster, and more transparent, both in my day job and on my own builds. 📲Follow along for tips, project insights, and what I’m learning while building my own home. #constructiontips #constructionlending #womeninconstruction #residentialconstruction #fixandflip #realestateinvestor #privatelending

Thank you Samantha Rowan for including my commentary in here recent article on PERE Credit, here is part of it, full article can be found behind paywall on link at bottom. "Ran Eliasaf, founder and managing partner of New York-based real estate private equity manager Northwind Group, said the firm is seeing a supply demand imbalance in some metropolitan areas, which could be prime for a construction lending rebound. “The overarching theme we are seeing is a lack of supply in most major urban markets,” Eliasaf said. “This is specifically true in New York and other gateway cities. So, if you have a lack of supply and demand is stable, it is a good basis to build new housing.” High construction costs for lumber and other materials and labor have remained as construction underwriting obstacles, though this is starting to change, too. “Prices are coming down and that, coupled with the fact that interest rates are starting to gradually go down, means there is a very healthy environment for building new housing properties, ” he added. On paper, returns have also been a pressure point, especially for investors who find the equity side more attractive relative to credit in the current market. “If you can lend on a project and make anywhere from 11-13 percent return, why do the equity to get a 16 or 18 percent? It’s very challenging.” As interest rates and construction costs moderate, Eliasaf believes there will be an uptick in construction lending. But the outlook is not entirely clear. “The biggest risk anyone has to underwrite now, whether for equity or credit, is political risk, ” Eliasaf added, citing New York’s mayoral race as one example. “In general, we are seeing a geopolitical environment that is starting to be more unstable. It’s hard to underwrite, but it is the biggest thing we need to monitor.” https://lnkd.in/dD6FBNKd

The Henley Group, Inc. recently provided loan assumption consulting services for a multifamily portfolio, consisting of $41M in CMBS financing across three separate loan transactions. Our team underwrote the aging workforce housing, untimely data from seller and even a fire at one property during the process. Despite these hurdles, we successfully closed the loan assumptions, enabling our client to lock in significantly below market interest rates with 6–7 years of term remaining.

Worth Avenue Capital, LLC has closed a $550,000 commercial bridge loan for a Connecticut-based real estate developer with deep experience in residential construction and condominium projects. The capital will be used to convert a single-family home in Uncasville into a four-family residence and to consolidate existing debt. The loan is secured by a second mortgage on the property, with an underlying loan-to-value of approximately 70%. This deal reflects WAC’s continued commitment to providing flexible, fast capital for experienced developers. #BridgeLoan #PrivateLending #RealEstateFinance #WorthAvenueCapital #ConnecticutRealEstate #DevelopmentFunding #CommercialLending

Keller Augusta client MassDevelopment has partnered with BankFive to provide loan financing to Bratt, LLC for a new 45-unit mixed-income rental housing development in Hyannis. https://lnkd.in/eGQ3MB5X