UNIONDALE, NY (Jan. 3, 2011) – In the wake of the U.S. Department of Housing and Urban Development’s implementation of new closing documents for its Federal Housing Administration (FHA) Multifamily mortgage insurance program, Arbor Commercial Mortgage, LLC has announced it has funded the nation’s first FHA-insured loan with HUD’s new multifamily loan documents.
Arbor, a national, direct commercial real estate lender, provided the $18,000,000 FHA-insured 223(f) loan for the refinancing of College Towne West Apartments (top left photo), a 532-unit, market-rate apartment complex in Lansing, MI. It was a 34-year fully amortizing loan.
“In the third quarter, HUD made substantial changes to its multifamily loan documents and Arbor was pleased to have been the first FHA Multifamily Accelerated Processing (MAP) lender in the country to close an FHA-insured loan in conjunction with the new documents,” said Joseph Donovan (middle right photo), Arbor’s Senior Vice President and National FHA Director. “We had experienced and capable transaction participants on both the borrower and HUD sides, resulting in a seamless closing and successful outcome.”
College Towne West Apartments benefits from the fundamental strength of the Lansing, MI, multifamily market, as it feeds the housing demands of Michigan State University as well as state capital employees. As a result, the property has a student concentration of approximately 70 to 75 percent.
Originating the loan for Arbor was Michael Jehle (lower left photo), Midwest Regional Director, in Arbor’s Bloomfield Hills, MI, office.
“In a state in which many sources of funding will not often participate these days, Arbor was able to provide extremely attractive loan terms and proceeds for our repeat borrower in this deal,” Jehle explained. “Arbor was pleased to participate as the FHA Multifamily Accelerated Processing lender in this transaction.”
Contact: Christopher Ostrowski, costrowski@arbor.com
FHA loan and VA loans is clear, you just need to find out if you meet the requirements for one of these programs. Remember the VA offers a lower down payment and typically lower rates than the FHA so it is your first option, but if you have never served the military and are not a veteran then at the very least you should try for a FHA insured loan.
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