Before You Put That Deal on Hold…
Higher rates have changed the numbers. But have you explored all your financing options?
At last week’s NAHB Fall Meetings in Detroit, conversations quickly turned from industry updates to interest rates and the projects being delayed, reconsidered, or shelved as a result.
Architects are seeing market-rate projects dry up. Contractors are watching planned developments get put on hold. Developers are wrestling with deals that penciled out just months ago but no longer make financial sense.
We’re hearing the concerns firsthand. But we’re also seeing reasons to take a second look before walking away from a deal.
Before you shelve a project, inject more equity, or accept less favorable financing terms, consider three questions:
- Could a different financing structure bring your project back into balance?
Long-term, fixed-rate FHA financing may offer higher leverage and more favorable debt terms than conventional alternatives, depending on the project. - Is an upcoming loan maturity an opportunity to rethink your capital stack?
For qualifying existing multifamily properties, FHA refinancing may provide longer-term rate certainty, reduce future refinancing exposure, and potentially improve cash flow. - Are you evaluating the total cost of financing, not just today’s interest rate?
Amortization, leverage, recourse, loan term, and future refinancing risk all affect a deal’s long-term economics. Depending on your project’s needs, options such as split-rate construction financing, rate buydowns, and different prepayment structures may offer additional flexibility.
At AGM Financial, we believe challenging markets call for a closer look at your options—not necessarily a change in your plans.
FHA financing isn’t right for every project. But its long-term, fixed-rate, nonrecourse structure can offer meaningful advantages for qualified multifamily developments and existing properties.
Before you change your plans, let’s run the numbers.
Do you have a project in planning, a stalled deal, or a loan approaching maturity? Bring us the scenario. We’ll help you determine whether FHA financing deserves a closer look.
Contact AGM to request a second look at multifamily financing.
About AGM Financial Services, Inc.
Family-owned with over 30 years of experience, AGM has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.