Under the FHA programs, M&T RCC provides funds for acquisition, refinancing, new construction, or substantial rehabilitation of a property.  The use of these programs has many distinct advantages to the borrower:

• Non-recourse.  Mortgagor assumes no personal liability.
• Long-loan terms. Up to 40 years (plus the construction period) for loans insured under the 221(d) programs.  Up to 35 years for existing properties insured under the 223(f) programs.
• Highly leveraged. No loan to value criteria for certain programs and LTVs of 85% to 100% for other programs.
• Profit motivated sponsors may use up to 90% of net operating income to size a loan, and non-profit sponsors may use 95%; resulting in debt service coverage ratios as low as 1.05x to1.11x.
• Market driven-no income tenancy requirements.
• Interest rate fixed for the entire loan term at initial closing.
• Fully assumable.
• Most loans are securitized as Ginnie Mae MBS, which provides for a “AAA”  rating.
• Most operating and performance covenants typically found in conventional loan agreements are eliminated (ie no lease-up requirements, annual debt service coverage ratios, net worth benchmarks)
• FHA can be used as a credit enhancement to taxable or tax-exempt fixed rate bonds.

In addition to loans processed under MAP guidelines, M&T RCC can provide financing under HUD’s TAP programs as well.  These programs provide financing for the streamline refinancing of existing HUD insured properties through Section 223(a)7, hospitals pursuant to Section 242, and secondary debt pursuant to Section 241. 

For specific product information, please contact us directly at 1 (800) 737-2344. 

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