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HUD Publishes Two Mortgagee Letters: Creating a Middle Income Housing Option for 221(d)(4), and Multifamily Changes in Debt Service Coverage Ratios (DSCR) and Loan to Value/Loan to Cost Ratios
The Office of Multifamily Housing Programs published two Mortgagee Letters updating the FHA's Multifamily Housing Programs' underwriting standards and guidelines.
Today, the Office of Multifamily Housing Programs published two Mortgagee Letters updating the Federal Housing Administration's (FHA's) Multifamily Housing Programs' underwriting standards and guidelines.
- Creating a Middle Income Housing Options for 221(d)(4) Mortgagee Letter, creates a new set of underwriting thresholds for Middle Income Housing.
- Multifamily Changes in Debt Service Coverage Ratios (DSCR) and Loan to Value/Loan to Cost Ratios (LTV/LTC) Mortgagee Letter with changes that will increase financing flexibility for lenders and developers seeking to create new or refinance existing affordable multifamily rental properties under the 223(d)(4) and 223(f) programs.
These changes will help increase individual loan proceeds available to developers and decrease the cash needed to close for FHA transactions. This will allow FHA transactions to be more competitive with today's market needs while encouraging lenders and developers to provide affordable rental homes for those of modest means.
