Agency (FHA/HUD, Freddie Mac, Fannie Mae)

Multifamily Agency Resources: 

La Quinta enjoys a long-term contractual agreement as an approved firm with one of the largest Agency lenders in the country for 19 + 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.

Existing Multifamily properties are eligible for FHA/HUD Financing and are easily assumable—rural locations and existing buildings or as an exit out of a construction loan. Building classifications, A through D is often acceptable. All programs are non-recourse: Offering Acquisition of 87% LTV, Refinance as 87% LTV, and 80% LTV as cash-out. Programs offer a fixed rate of 35 years with no balloon periods and a low DSCR of 1.149%. Non-substantial rehab is available under this program.

View current "Rates" available at this website. 

A construction program offers construction and long-term financing as one loan and one closing with a non-recourse fixed rate during a typical 24-month building period, continuing for an additional 40-year period. 

Developers and builders can choose between programs offering 87% Loan-to-Cost with a DSCR minimum of 1.149% or a NEW Option under the "Middle Income" program providing 90% Loan-to-Cost with a minimum DSCR of 1.15%.

Requires 50% of units are targeted income levels up to 120% of AMI.

Equity considerations are land equity value, pre-paid soft costs, and a unique arrangement based on roughly 10% of the loan amount when structured correctly under approved guidelines. (Contact us for details) Letters of Credit can also be arranged.

La Quinta provides "Construction Services" (see website tab) including federal ADA requirements and Green Energy Certification approvals under this agency program. In addition, a maximum credit of up to $5,000 for each building, (45-L) can be arranged by La Quinta. 

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.

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 construction and 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 above construction standards with an 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.