Love Funding Unveils Bridge Financing Program for HUD Multifamily and Healthcare Loans
Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, today announced the introduction of a new bridge financing program designed to provide interim funding support for acquisition and refinancing applications on U.S. Department of Housing and Urban Development multifamily and healthcare loans. The program will provide bridge financing of up to three years for qualified borrowers seeking long-term HUD financing to acquire, refinance, or take equity out of a multifamily or healthcare project. Suitable multifamily projects include market-rate, affordable and age-restricted housing, while healthcare projects include skilled nursing, assisted living and memory care facilities. The new program was made possible by Love Funding’s recent acquisition by Midland States Bank, which gave the lender access to additional capital. The likely candidates for bridge financing face time constraints or require debt seasoning – the amount of time the existing debt has been in place – to comply with HUD requirements. For instance, timing is often an issue for acquisitions due to purchase contracts that require a borrower to close quicker than a HUD transaction can be completed. Similarly, existing debt that is expiring can present the same challenge. The new bridge financing program will also give healthcare borrowers the opportunity to take equity out of their project and season for two years before applying for HUD financing, and for multifamily and healthcare property owners to transition from construction loans to long-term HUD financing for projects constructed or rehabilitated within the last three years. “There are a number of reasons why bridge financing makes HUD’s multifamily and healthcare programs more attractive to would-be borrowers, and we are excited to deliver this solution to our existing and future clients,” said Jonathan S. Camps, a senior vice president in Love Funding’s Washington D.C. headquarters and a member of the executive management team. The bridge-to-HUD program will provide Love Funding’s clients an interim financing option when quick executions are required or HUD regulations dictate the need for interim financing. Love Funding will soon expand its platform even further by offering tax credit equity bridge loans, as well as conventional financing for multifamily and healthcare new construction. The program will offer terms ranging from six months to three years, amortizations up to 25 years, and competitive pricing. Loan-to-value requirements will vary by property type.