WASHINGTON, DC-The 20 lenders selected to participate in a pilot program the US Department of Housing and Urban Development launched in February—the Multifamily Low Income Housing Tax Credit pilot—are set to begin training Friday. Once the session is complete, lenders will be qualified to start processing applications.
A HUD spokeswoman tells GlobeSt.com that any deals in these lenders’ pipelines that fit the program’s criteria can transfer to the pilot…
The program was included in the Housing and Economic Recovery Act of 2008. Its goal is to streamline FHA mortgage insurance applications for projects with equity from the Low Income Housing Tax Credit program. To this end, HUD has created a distinct application form and processing track under the section 223 (f) program.
…the pilot is a timely program given that more tax credits are becoming available as the economy recovers. This particular program is unique as it comes with section 223 (f) mortgage insurance—which offers some of the best interest rates in the market… —and has expedited execution.
The above includes excerpts from “Lender Training Begins for HUD’s Multifamily LIHTC Pilot” by Erika Morphy. Read the full article on Globe St.com.