HUD Affordable Housing Mortgage Programs

As defined by HUD, affordable housing is a project that meets either the minimum affordability requirement for Low Income Housing Tax Credits (LIHTC) or project-based Section 8 housing. HUD provides more lenient underwriting on qualifying affordable transactions.

Projects need not use LIHTCs to qualify for affordable underwriting so long as they meet the requirements for LIHTC affordability. To qualify as affordable based on project-based Section 8 housing, the project must have a Housing Assistance Payment contract covering 90% of the units with a minimum remaining term of 15 years.

Affordable Housing
Affordable Multifamily Housing

The Benefits of FHA-Insured HUD Affordable Housing Mortgage Programs

To offset the costs of new construction, substantial rehabilitation, and ongoing maintenance of affordable housing, HUD insures mortgages offered by its HUD-approved lenders, providing several benefits to multifamily developers and operators, which may include:

  • Non-recourse loans to fund a wide range of properties.
  • Lower fixed interest rates, and longer, fully amortized terms translate to lower payments and greater cashflow.
  • Lower debt service coverage underwriting requirements.
  • Loans are fully or partially assumable, which can be attractive for sale opportunities or estate planning purposes.
  • Up to 35 years of fixed rate and fully amortizing for existing projects.
  • Up to 40 years of fixed-rate financing, plus construction time, for new construction or substantial rehabilitation.
  • Cash-out refinancing opportunities for owners to repurpose equity.
  • Finance value-add and other capital expenditures.

FHA-Insured Mortgage Programs for HUD Affordable Housing Projects

As an approved Multifamily Accelerated Processing (MAP) lender, Century Health & Housing Capital offers several FHA-insured mortgage programs under the HUD affordable housing program, including: