Apartment building construction during pandemic has allowed owners and builders to look at it with fresh eyes and a different perspective. COVID-19 has forced the construction industry to look at providing residents of multifamily real estate great amenities within a limited space. Even shopping for an apartment these days have become virtual because of the Coronavirus pandemic.
Why take out an apartment building construction loan
Now more than ever, people are finding ways to acquire income in whatever possible way. Taking out a multifamily loan is a great way to earn money and at the same time lower your financial risk. The US Department of Housing and Urban Development and the Federal Housing Administration or FHA loans
can be availed for apartment construction loans.
FHA loans give the borrowers of multifamily buildings longer terms. Longer amortizations will mean lower payments and this gives more flexibility in debt service ratios. Of course, longer terms mean that ultimately a higher interest rate but as FHA and HUD multifamily loans are government-insured, they earn AAA credit ratings. In this time of COVID-19, rates are changing and processes as well so best if you talk to a loan officer about the current rates
HUD 223(f) for multifamily properties
A good option for borrowers who are thinking of buying or building a multifamily property would be the HUD 223(F) loan. Loans begin at $ 1 million but there can be exceptions. Usually, HUD 223(f) loans come with a 35-year fixed-rate term but it can also be at 10 years. You can even qualify for low-income housing tax credits (LIHTCs).
There are viable options for your apartment building construction loans
. Do not let the fears and uncertainties of COVID-19 stop you from exploring the possibilities of owning a multifamily unit. Now can be the best time to take the plunge, we will be more than willing to help you on your journey.