
2911 Rhode Island Avenue in Washington DC
AGM Financial Services, Inc. is proud to announce the successful closing of a $14,450,500 Section 221(d)(4) mortgage for this 100 unit new construction project. The
It is important to note that, in practice, most affordable projects have much lower leverage and higher coverage, driven by the need for gap financing and LIHTC investor requirements.
FHA-insured loans for new construction have a 40-year term and are fully amortizing. There is no loan-to-value test on new construction.
To qualify for affordable underwriting (and MIP) affordable project must comply with the requirements of the Low Income Housing Tax Credit (LIHTC) program, including unit set-asides (20% at 50% of AMI or 40% at 60% of AMI), a minimum 15-year compliance period, and a regulatory agreement recorded by a governmental body.
Interest rates on FHA-insured loans are fixed just before closing. Rates remain fixed at that same rate through construction and for the life of the loan. An FHA-insured loan for new construction is a single loan with up to 24 months for construction (consistent with the term of your construction contract) and a full 40-year term after construction. As a single loan, there is no conversion or “hurdle” to the permanent loan (that is, no occupancy or debt service coverage tests). An audit of project costs is required, but that is almost always required for affordable projects in any event.
FHA-insured loans are fully non-recourse, subject to certain “carve-outs” such as fraud, theft of funds, or unapproved transfers of ownership interests. These carve-outs do not change the non-recourse nature of the loan but do require that a key individual accept personal liability for these “bad boy” acts.
AGM Financial Services, Inc. is proud to announce the successful closing of a $14,450,500 Section 221(d)(4) mortgage for this 100 unit new construction project. The
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
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Suite 1000
Baltimore, MD 21201
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