FHA and HUD Office of Housing

HUD is announcing the launch of a new “Express Lane” that enhances eligibility for FHA multifamily new construction transactions that use LIHTC equity. The LIHTC Express Lane allows underwriting for eligible transactions to be completed in 30 days or less. hud.gov/sites/default/…

HUD is expanding access to quality rental housing by allowing Build to Rent communities to qualify for FHA-insured financing under two of its Multifamily mortgage insurance programs. Read more: hud.gov/news/hud-no-26…

FHA delivered speed, certainty, and execution.

In a recent 232 Express Lane transaction with Lument Real Estate Capital, FHA, under the leadership of Federal Housing Commissioner Frank Cassidy, issued a firm commitment in just 7 days from application.

The deal supports a $21.2 million Section 223(f) loan for Pemberly Place in Lincoln, NE, a 132-bed assisted living and memory care facility.

Key Terms:
•5.42% rate
•64.4% LTV
•Currently in closing

This is a strong example of how FHA’s 232 Express Lane is driving efficiency while maintaining disciplined underwriting—backed by private capital doing the lending, with FHA providing the insurance.

New Enhancements for Section 232: More Eligible Deals in Texas and Indiana

Under the leadership of Federal Housing Commissioner Frank Cassidy, FHA’s Section 232 program recently reviewed the structure and current longevity of supplemental payment programs in Texas and Indiana. Based on this review, FHA may consider providing additional credit for these supplemental income sources in loan sizing, subject to the following parameters:

-The capitalization rate applied to QIPP/IGT revenue may not be less than 25 percent.

-The value derived from QIPP/IGT income may not exceed 30 percent.

With these enhancements, FHA will strengthen its ability to insure mortgages for skilled nursing and other facilities under the Section 232 program, with a continued emphasis on disciplined underwriting, sound credit standards, and long-term loan performance.

Commissioner Frank Cassidy recently visited Columbus, OH with Senator @berniemoreno to talk about housing affordability and supply and HUD & FHA’s role in supporting production. We held a roundtable at @MORPC, visited @ConnectRE_’s factory, and toured impactful Columbus developments at Post Oak Station and @NatlChurchRes’s Cherry Blossom.

We are proud to support @SecretaryTurner’s agenda to cut red tape and streamline policies at @HUDgov.