Discover and read the best of Twitter Threads about #HUD
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If you own land and want to develop multifamily housing on it, you could get an 85%+ LTC construction loan that might even allow for cash out. How? Land equity and an often unknown HUD detail: BSPRA 🧵
What is BSPRA? BSPRA stands for Builders/Sponsors Profit Risk Allowance. It is an option under the Section 221(d)(4) program which requires:(1) an established identity of interest between
the borrower and general contractor and (2) the GC’s profit to be satisfied outside of loan.
the borrower and general contractor and (2) the GC’s profit to be satisfied outside of loan.
In exchange for this structure, the recognized costs in a development (not including land) are artificially increased by 10%. The 85% loan to cost calculation is then made on
the higher cost figure, resulting in a higher insured loan amount (roughly 93% of recognized cost)
the higher cost figure, resulting in a higher insured loan amount (roughly 93% of recognized cost)
HUD multifamily finance is the best kept secret in the industry. Many believe that only affordable/subsidized/rent restricted properties qualify, but this is not the case. 🧵
HUD MF financing is often the best option for medium to long term holders that are looking to build generational wealth. Not only do HUD’s programs offer the best terms in the business, they also offer the lowest rates as well. forbes.com/sites/forbesre…
HUD’s 221(d)(4) program for the construction or sub rehab of market rate multifamily housing includes terms such as: 85% LTC, non-recourse, 40 year term + construction period, fixed rate, fully amortizing
Went to pay mortgage, but the amount was weirdly less than usual. Called. For 9 years we paid an additional 131.93 per month for mortgage insurance, required because we had a HUD RISK-BASED loan. No longer have to pay it. So our monthly payment went down. #ExpensiveToBePoor #Hud
I never questioned it, because insurance on my biggest investment sounded like a good idea. I looked at my statements, I saw it, it gave me peace of mind. Oh good, if anything happens, I’m insured. Nope. That’s something different.
Banker I spoke to explained the insurance I had been paying, “not everyone has to pay this, usually it’s a condition of the loan” “Because I was a risky borrower?” “Well…I don’t know why, but the good news is you don’t have to pay it now!” “Oh…cool.” “You don’t sound excited…”
Louisiana state Senator Wesley Bishop was charged with making a false statement to #HUD.
Looks like he claimed some people were tenants of his rental property, but they actually weren’t.
#ButNothingsHappening
Looks like he claimed some people were tenants of his rental property, but they actually weren’t.
#ButNothingsHappening
Here’s an article from September saying he violated the terms of a Road Home grant.
nola.com/news/courts/ar…
nola.com/news/courts/ar…
AG Barr and Dr. Ben Carson signed a MOU between DOJ and #HUD to clarify procedures on when to use the False Claims Act for violations by #FHA lenders and how to remedy any violations.
Wonder why the procedures were written to cause big banks to withdraw from FHA lending so much. Since 2010, the they've originated only about 14% of FHA loans. In 2010, it was about 45%.
Here's an additional statement from Carson/HUD:
Smug @SecretaryCarson & the occupant of the @WhiteHouse are brutalizing our communities on an almost hourly basis. As we approach #PrideMonth, it is our collective responsibility to uplift our #trans brothers & sisters in the face of these cruel policies time.com/5595474/donald…
This hateful proposed rule will endanger the lives of trans people—particularly trans people of color— who disproportionately experience homelessness, putting them at risk of physical & sexual violence.
Carson unveiled this proposed rule ONE DAY after he sat before @RepWexton & assured us that #HUD would not eliminate the 2012 Equal Access Rule, which bars federal housing discrimination on the basis of sexual orientation or gender identity
