What is Low-to-Moderate Income Housing?
Low-to-moderate income housing is subsidized housing intended for people whose incomes are low to moderate when compared to prevailing incomes. In general, all Section 8 housing must be intended for people with this income level. To determine what the rent limits are based on the low-to-moderate i
What is Loan-to-Value Ratio (LTV)?
A loan-to-value or LTV ratio is a metric that compares the size of a loan to the value of the asset. Higher LTVs are generally riskier for lenders, and, for certain loans, can result in higher interest rates. When it comes to HUD 223(f) loans , HUD permits up to 85% LTV for market rate p
What is Leverage?
Leverage can be defined as the practice of financing assets with borrowed money. It also refers the amount of debt used to finance an asset. The asset is typically used as collateral for the purchase.
What is MAP (Multifamily Accelerated Processing)?
The MAP, or Multifamily Accelerated Processing program is a streamlined method and set of national standards for approved lenders to prepare, process, and submit loan applications for HUD multifamily financing. To be approved for MAP, all underwriters employed lender must attend a specialized HUD
What are LIHTCs (Low-Income Housing Tax Credits)?
Low-Income Housing Tax Credits, or LIHTCs are federal tax incentive intended to increase the availability of low-income housing. LIHTC credits can be claimed for up to 10 years after the construction is completed and the property is leased up.
What is a Market-Rate Property?
Market rate properties are non-subsidized properties, for which residents pay market rate rents or purchase properties at market value. When it comes to purchasing market-rate properties with a HUD 223(f) loan , borrowers are permitted LTVs of up to 85%, and DSCRs as low as 1.18x.