Multifamily Agency Resources:
La Quinta operates under a contractual agreement as an approved firm with one of the largest Agency lenders in the country for 18 + years.
Capital is available for Acquisition, Refinance, Construction (Modular & Stick-built), and Rehabilitation or Conversions. Open to Multifamily projects, with some mixed-use per guidelines, including Assisted Living and health care, and Mobile Home Parks.
FHA/HUD Financing is easily assumable. Rural locations and existing buildings or as an exit out of a construction loan. Building classifications A through D are often acceptable. All programs are non-recourse, as an Acquisition of 85% LTV, Refinance as 85%LTV, and 80%LTV as cash-out of the appraised value. Programs offer a fixed rate of 35 years with no balloon periods. As of September 20, 2024, the rate was 4.80% (rate lock required). Non-Substantial Rehab is allowed under this program.
Minimum Debt Service Coverage is 1.176, lower for affordable housing projects.
Construction and Substantial Rehab Programs are also offered, including construction and long-term financing as one loan and one closing with the same fixed rate during a typical 24-month building period, then continuing for an additional 40-year period. The fixed rate as of September 20, 2024, was 5.28% (rate lock-required) and 85% Loan-to-Cost. Your Equity is considered the value in land, pre-paid soft costs, and includes a unique equity arrangement based on 10% of the loan amount under approved guidelines. (contact us for details) Letters of Credit can also be arranged.
Other Benefits Include:
*Housing Tax Credits (LIHTC) for the construction & restoration of affordable rental housing are allowed.
*No Limit on rents, tenant income, or return on equity.
*Loans are easily assumable.
*Offered to Rural areas per guidelines.
*Third-party expenses and loan costs are financeable.
* Retail and self-storage component is allowed. Not to exceed 25% of the total net rentable area and 15% of the gross income.
La Quinta provides advisory services for federal ADA requirements and Green Energy Certification approvals with a maximum credit of up to $5,000 for each building, (45-L) Plus a mortgage credit cost-saving reduction from .65% to .25% of the principal loan amounts over the 40-year term.
As noted, there are tremendous advantages to the above program if your construction project is within the early stages of development. The time requirement from the required concept documentation and preapproval is 45-60 days, plus an estimated closing of 8-10 months.
For projects that require a shorter financing period. La Quinta offers a wide variety of alternative ground-up construction solutions with the ability to build a project outside of this construction program while implementing the required standards to exit to a 35-year fixed rate, non-recourse, and no balloon periods as a popular alternative.
Current FHA/HUD programs consist of:
223 (f) Acquisition, Refinance, Cash-out, Light Rehab, and upgrades.
221 (d) (4) Ground-up Construction, Substantial Rehabilitation, Modular & Stick-Built.
223 (a) Refinance of existing FHA/HUD debt
232 For Assisted Living, Skilled Nursing, Memory, and Health Care. Acquisition, Refinance, and construction.
Other Agency Programs: Through Freddie Mac, Fannie Mae, for Acquisition and Refinance of existing projects offer fixed-rate periods, generally amortized over 30 years. Rates and LTVs can vary by location Tier, credit scores, product types, and other underwriting factors.
Programs can offer Interest-only payments for a specific period. Non-recourse is available. Capital arrangements vary under guidelines including the size of the loan as “Small or Large Balance” Loan sizing from $1mm to $100mm. Open to Multifamily, Student Housing, and Manufactured Housing.
There are considerations for “Bond Credit Enhancements” Given there are several underwriting variables. We recommend contacting us for assistance and options.
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