Multi-Family Loan Purchases
How the Program Works
Borrowers may be individuals, partnerships, joint ventures, limited liability companies, regional housing authorities, for profit or nonprofit corporations and must apply for financing through an approved lender. Properties must be multi-family housing of at least five independent living units principally designed for residential use. The loan proceeds may be used to acquire, refinance, rehabilitate in conjunction with the acquisition or refinance of the property, and/or extract equity in conjunction with a refinance in order to purchase another multi-family property that is financed by AHFC.
- Under the Whole Loan Program, AHFC will provide 100 percent of the financed amount from your lender. If cash equity extraction is requested, other than for the purchase of another AHFC-financed project, the lender must participate for the amount requested.
- There is no maximum loan amount for the program. The maximum principal amount of the loan may not exceed the lesser of 80 percent of the appraised value of the property or one of the following:
- Acquisition: 80 percent of the acquisition price or appraised value, whichever is less.
- Acquisition with Rehabilitation: The total of 80 percent of the acquisition cost, 100 percent of the allowable costs to rehabilitate and 100 percent of other AHFC-approved transaction costs up to 80 percent of the appraised value.
- Refinancing: 80 percent of the appraised value.
- Refinance with Rehabilitation: 100 percent of the allowable rehabilitation costs, the amount of the debt being refinanced and other refinancing costs approved by AHFC up to 80 percent of the appraised value.
- New Construction: 100 percent of the allowable costs to construct up to 80 percent of the appraised value.
- Refinance with Equity Extraction: Please contact an approved lender for details.
- Minimum debt service coverage ratio is 1.25 percent using a vacancy rate of no less than 5 percent.
- Taxes, insurance and replacement reserves are collected monthly.
- 5:4:3:2:1 Prepayment penalty for the first five years is graduated monthly.
- Lower interest rates available for balloon feature option—see your lender for details.
- Potential Borrowers may contact any of our approved lenders.