Program Overview

The 241(a) program is a financing program designed to insure a second mortgage to finance repairs, additions and improvements of existing multifamily apartments that already have an existing FHA insured mortgage.The 241(a) program is a financing program designed to insure a second mortgage to finance repairs, additions and improvements of existing multifamily apartments that already have an existing FHA insured mortgage.

Borrowers

Single purpose entities that can either be profit or non-profit motivated.

Personal Liability

None. Loans are non-recourse.

Loan Amount

There is no maximum loan cap associated with this program.

Term

The term is limited to the term of the existing loan.

Loan-to-Value

80% of the project’s value for market rate for skilled nursing facilities and
assisted living facilities and 85% of the projects value for non-profit skilled
nursing and assisted living facilities

Amortization & Assumability

Loans are fully amortized and assumable.

Interest Rate

Interest rates are fixed at closing. Rates are typically set lower than conventional financing due to the credit enhancement provided by FHA at closing.

Mortgage Insurance Premium

A mortgage insurance premium is paid annually based on the outstanding
principal. Premiums range from between .25% and .95% depending on the project.

Interested in This Program?

Please contact us and one of our experienced loan officers will reach out to assist you.

Financing for Supplemental Loans (Second Mortgages).