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There are Encouraging Signs, But No Clear Direction…Yet
Long-term rates have been rising since their recent lows in September. The bond market is reacting to uncertainty – uncertainty about inflation, jobs, tariffs, tax
AGM offers FHA-insured construction / permanent senior financing insured by the Federal Housing Administration, a solid solution for affordable housing projects. Since 2004, we have lent more than $273 million to finance more than 5,000 units in twenty-seven RAD, RAD for PRAC, and RAD / Section 18 projects with PHAs all across the country.
Getting these projects financed requires a coordinated plan and an experienced lender, one you can trust to get your deal done.
At AGM, we originate, underwrite, close, fund, and service all of our loans. We have worked with for-profit and not-for-profit developers for more than 30 years. We’ve had great success harnessing the full potential of FHA with developers like you to get affordable housing done.
We offer FHA-insured 221(d)(4) construction / permanent loans to finance new affordable apartment construction or substantial rehabilitation with longer terms and amortization. A single loan covers up to two years for construction and a fully amortizing 40-year term, with no “hurdle” to get to the permanent phase, all at the same low fixed rate. The loan is fully nonrecourse and works well with the staged equity pay-ins favored by LIHTC investors.
If you have questions during the process — from origination to underwriting to closing to funding to servicing — you can pick up the phone and talk to our owners. You can’t do that at the large institutions. Whether you’re a small or medium-sized developer in the multifamily space or a large developer new to affordable housing, AGM is a trusted partner you can count on. Rely on us to help you navigate the process, the rules, and timing that are critical to the success of your project.
Let’s Discuss Your Affordable Housing Project
At AGM, our team understands your needs because we’ve been in your shoes. That means we understand the importance of obtaining the right loan — one that fits your needs today and protects your legacy for years to come. No other financing solution can offer you the same benefits as FHA — higher leverage, lower fixed rates, and peace of mind for the long term.
Let’s take a closer look at the key advantages of FHA financing:
The Low-Income Housing Tax Credit Program is essential to creating affordable housing projects. FHA financing works in conjunction with tax credits and layers of subsidy to provide a complete financing solution. Tax credit investors understand FHA and like the certainty of a single loan with a rate fixed at closing. Developers like FHA’s lower rates, favorable equity pay-in schedules, and, of course, not having to sign guarantees.
FHA financing offers 1.15 debt service coverage, giving you the option, with your LIHTC investor, to boost proceeds and fill gaps in the capital stack. We can go to 1.11 DSCR for properties that are 90%+ Section 8.
Affordable housing deals come with a lot of moving parts. At AGM, we have seen it all and done it all. For more than three decades, we have closed over $10 billion in FHA-insured multifamily project loans nationwide. We know the process and the players, including state agencies, bond issuers, and bond counsels, many layers of subsidy in the capital stack, and what your tax-credit investor wants and needs. We know the process and the timing, and we know how to get your deal to closing.
We offer FHA-insured 221(d)(4) construction / permanent loans to finance new affordable apartment construction or substantial rehabilitation, both with longer terms and amortization. A single loan covers up to two years for construction and a fully amortizing 40-year term, with no “hurdle” to get to the permanent phase, all at the same low fixed rate. The loan is fully nonrecourse and works well with the staged equity pay-ins favored by LIHTC investors.
Substantial rehabilitation projects in existing affordable housing present unique challenges. Unlike new constructions, where developers have a blank canvas, rehabbing existing structures demands a delicate touch to minimize tenant disruption and get the job done.
At AGM, we understand the intricacies of in-place rehab and the regs that govern tenant relocation. It’s not just about moving people around, but about cost, timing, and taking care to protect the health and welfare of your residents. From relocation plans to construction draws to equity pay-ins to compliance, AGM is with you every step of the way in your in-place rehab.
It is your deal. AGM is here to help. AGM owners Margaret Allen and Myles Perkins have cultivated relationships with HUD staff all across the country and at senior levels in Washington. Our staff brings valuable experience in bond financing, development, and construction, not often found in other lenders. That experience can help you plan and structure your project and your financing to avoid problems down the road. With AGM, you can rest a little easier.
AGM has strong working relationships with state allocating agencies for tax credits and tax-exempt bonds. These relationships can help you to navigate the complexities of LIHTC and bond financing, ensuring you get the most – and avoid the worst- from the process.
AGM originates, underwrites, funds and services FHA-insured loans nationwide. In Maryland, we are the leading lender for bond-financed affordable housing with 5,500 units, 41 projects, and approximately $500 million in FHA-insured debt.
Margaret Allen
Founder & Owner
Myles Perkins
President & Owner
Unlike transaction-oriented lenders, we place a strong emphasis on building relationships and providing personalized service. We understand that, for you, the road is long, and the stakes in affordable housing deals are high. Our goal is to help you manage risk and avoid pitfalls along the way. We provide the support you need to get your deal done.
Long-term rates have been rising since their recent lows in September. The bond market is reacting to uncertainty – uncertainty about inflation, jobs, tariffs, tax
For the fourth consecutive year, AGM Financial Services (AGM) donated a total of $100,000 to four Baltimore nonprofit organizations. Recipients will receive a $25,000 unrestricted grant that
In November, we told you about two proposed changes to FHA underwriting meant to increase multifamily production. Now it’s official. Late yesterday, HUD announced changes
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Baltimore, MD 21201
Phone: 410.727.2111
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