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It has certainly been a wild ride this past month. HUD exhausted its loan commitment authority from Congress, the government shut down for two weeks, and the nation dabbled dangerously close to defaulting on its financial obligations. Despite all of this, Love Funding was able to move our business forward. Throughout the government shutdown, our experienced finance team continued to process, underwrite and service loans, and we stand as ready as ever to take on new business. Though none of us care to relive the events of the past month, I am proud of the way our team embraced the challenges and committed anew to helping our clients realize their financing goals. At Love Funding, we are always open and always available to answer your questions. Give us a call.
New Construction in Nebraska
Love Funding recently closed a $20 million construction-to-permanent loan for Aventine at Wilderness Hills, a new market-rate apartment community under development in Lincoln, Nebraska.
Love Funding secured the financing through the U.S. Department of Housing and Urban Development's Section 221(d)(4) loan insurance program for multifamily construction projects. Using the program enabled the borrowers to lock in a fixed, low-rate, non-recourse loan for a 40-year term once construction is completed.
Aventine at Wilderness Hills will offer 220 market-rate, garden-style apartment units in a total of 12 two- and three-story buildings. The site is located in an area that includes a mixture of commercial, retail and housing where the City of Lincoln is already planning to add several large commercial and residential projects in the near future.
Loan Modifications for Existing Borrowers
While a HUD 223(a)(7) refinance can take 90 to 120 days to process, a HUD loan modification can take as little as 45 days and no underwriting is required. However, a loan modification can only be handled by the lender who owns your servicing. In addition, if you have a Section 202 project that was previously refinanced through Love Funding, you may qualify for a loan modification to reduce your interest rate and improve cash flow. On April 19, HUD issued a memorandum to FHA lenders advising them Section 202 borrowers who had previously refinanced could participate in its loan modification program without losing exemption from the Multifamily Assisted Housing Reform and Affordability Act (MAHRA) of 1997. If you're unsure whether your project qualifies for a loan modification, give us a call.
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