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CITI Financial Group Direct
Apartment Loans/Senior Housing
Citi Financial Group provides funding solutions nationwide that have helped business owners and investors
achieve their financial goals since 1992. We have extensive experience with loans from $500K to $500 million.
Long Term Fixed Rate Permanent Loans
We offer combinations of the above with one closing (such as acquisition/construction/permanent loans). As a
correspondent for several national lenders, funds for qualified projects are available through our access to
secondary markets. These programs are available in major and secondary markets on a national basis
provided the projects meet customary underwriting criteria.
Working capital and operating escrows may be required for some products.
FHA Multifamily Loans, HUD Mortgage Programs and Interest Rates
Citi Financial Group Bank affiliates are licensed FHA operator under HUD, which is
the largest mortgage insurer in the United States. HUD administers the FHA
mortgage loan programs offering long-term, non-recourse financing for multifamily,
affordable apartments and cooperatives, assisted living facilities, skilled nursing
facilities, seniors housing, critical access hospitals and manufactured housing
communities. As a correspondent for the FHA Multifamily Accelerated Processing
("MAP") program, Commercial Loan Direct provides access to the flexibility of the
HUD FHA loan programs on an expedited basis.
As other capital sources have decreased considerably, borrowers are turning to
agency lending for new originations and refinancing of their apartment projects. The
primary benefit of FHA is that it is a source of financing that is always available
despite the volatility of the market. Commercial Loan Direct has prepared an
overview of the U.S. Department of Housing and Urban Development's (HUD) FHA
apartment mortgage insurance programs to help familiarize FHA loan applicants with
Advantages of FHA Apartment Programs
• Up to 83% LTV Purchases • Up to 83% LTV Refinances
• Non-recourse, low interest loans 35-40 yr amortization, low
• Loans are assumable multiple times
• Low DSCR requirements 1.17x
• All closing costs and lender fees are eligible to be included in the loan to be paid
• No Networth min. requirements • No liquidity minimum requirements
• Low experience requirements • Credit Score 680 FICO minimum
• Special construction and substantial rehabilitation loan program up to 90% of total
• Lock in the long-term construction interest rate prior to commencement of
• Mezzanine debt is allowable in some cases • No stabilization reserve is
required if there is a HAP contract
• Secondary financing plus the first mortgage can go up to 92.5% of value for
existing projects • No Medicaid Stabilization Reserve is required for healthcare
projects with Medicaid
FHA Apartment Loans
FHA 221(d)(4) New Construction or Substantial Rehabilitation for Apartments
New construction or substantial rehabilitation of rental or cooperative apartment
market rate or affordable housing. Construction and permanent financing is
available with loan to cost up to 90% (100% for non-profits) for a term and
amortization period of 40 years.
FHA 223(f) Refinance or Acquisition for Apartments
Refinance, acquisition or moderate renovation of existing apartments and housing
cooperatives. Offers up to 85% loan to value and a term and amortization period of
FHA 223(f) Refinance, acquisition or moderate renovation of existing Section 202
Refinance, acquisition or moderate renovation of existing Section 202
projects nationwide with a loan to value up to 90% or 100% of refinance
costs for a term of up to 35 years.
FHA 223(a)(7) Refinance of an Existing FHA Insured Multifamily or Healthcare
Refinance, acquisition or moderate renovation of apartment projects or healthcare
facilities. Offers up to 100% of refinance cost or up to the original mortgage amount
and a term of up to 12 years beyond the remaining term.
FHA LEAN 232 Pursuant to 223(f) Healthcare Acquisition and Refinancing
Refinance, acquisition or moderate rehabilitation of existing healthcare facilities.
Refinance or acquisition financing is available at up to 85% loan to value (90% for
non-profits) over a 35-year term.
FHA LEAN 232 New Construction or Substantial Rehabilitation for Healthcare
New construction or substantial rehabilitation of assisted living and skilled nursing
facilities. Construction and permanent financing is available at up to 90% loan to
value (95% for non-profits) over a 40-year term.
FHA 242 Construction, Rehab, Modernization or Expansion for Hospital and
Acute Care Facilities
Section 242 of the National Housing Act enables the affordable financing of hospital
projects by reducing the cost of capital and significantly enhancing the credit of
hospitals that qualify for mortgage insurance. The program improves access to
quality health care, reduces the cost of hospital care, supports HUD's community
development mission, and contributes revenues to the General Insurance Fund.
Currently, hospitals in HUD's Section 242 portfolio range from small rural facilities to
some of the nation's top urban teaching hospitals.
FHA 207 Manufactured Housing Community Properties
Section 207 Program insures mortgage loans to facilitate the construction or
substantial rehabilitation of apartment manufactured home parks.
FHA 241(a) Insurance for Supplemental Loans
Section 241(a) provides supplemental - 2nd loans - to borrowers that currently have
an FHA insured apartment, healthcare or hospital mortgage loan.
Important Factors Borrowers Should Consider When Selecting the FHA Loan
Programs for the Refinance, Acquisition or Moderate Rehabilitation of Multifamily
and Seniors/Healthcare Properties
Loan Processing Time –Application to closing generally takes 3 to 6 months for
refinance or acquisition and 9 to 12 months for new construction or substantial
Prepayment Penalties – The prepayment terms are negotiable, but they include an
initial lockout period followed by a declining percentage penalty through year 10 of
the permanent loan.
Rehabilitation Qualifications – Repairs cannot exceed $6,500 per unit (adjusted
for local high cost factor), 15% of appraised value or replacement of two or more
major building systems.
Restrictions on Cash Out – No cash out is allowed for the 223(a)(7), 232 pursuant
to 223(f) and 223(f) for the Refinance of Section 202 programs.
What are the Fees and Expenses Involved with making an FHA Loan?
Lender Application Fee to cover third-party reports and underwriting costs.
HUD Application (Government Fee): Non-refundable fee of $3 per $1,000 (0.3%) of
the mortgage amount due to HUD with the Firm Commitment submission package.
FHA Mortgage Insurance Premium: HUD sets the cost of the FHA insurance. The
MIP is paid in advance for the construction period and is escrowed monthly after
FHA Inspection Fee: $30 per unit when repairs are less than $3,000 per unit. 0.5 %
- 1 % of the cost of repairs otherwise. Broker fees: 3%. To Citi Financial Group.
Origination / Commitment Fee: Negotiable.
Legal/Closing Fees: Amounts vary by transaction type.
How Do I Get Started?
As an approved FHA Multifamily Accelerated Processing (MAP) correspondent,
CFG provides access to the flexibility of the FHA loan programs on an expedited
The borrower and the lender work together to prepare and submit preliminary
project data, a market study and environmental report. HUD has 45 days to review
and issue an invitation to Firm Commitment
Upon receiving a Firm Commitment, the borrower and lender will submit a Firm
Commitment Application that includes all third-party reports, full project plans and
specifications, general contractor’s costs, a full credit review of the borrowing entity,
principals and general contractor, description of the proposed property manager
and business plan. HUD’s review time is up to 45 days.
The time from the Application Letter to closing is approximately 6-9 months.
The borrower and lender may opt to combine both steps in this process and submit
a single application to HUD for review. HUD’s review time is up to 60 days, and the
time from Application Letter to closing is approximately six (6) months.
Get a HUD FHA apartment loan quote today
Assisted Living Loans - Seniors Housing Mortgages
HEALTH CARE FINANCING
CFG Affiliates Banks and Investors offers financing for seniors housing projects; including congregate care
facility mortgages, assisted living property loans, skilled care nursing home mortgages, and continuing care
retirement community loans. Our expertise and experience with long term care financing covers the full
spectrum of seniors housing, from independent living to skilled care nursing and acute care facilities.
Skilled Nursing Facilities, Assisted Living Facilities, and Special Use
Small, Rural and Community Hospitals
Seniors Independent Living
Skilled Nursing Facilities (SNF), Assisted Living Facilities (ALF) and Special Use
Seniors Independent Living and Small, Rural and Community Hospitals
FHA Y Y Y 30-45YR 95% Age restricted Apartments
FNMAE Y N Y 10-25yr am 75% Congregate Care
Mezzanine Y N Y 2-3yr 85% Congregate Care
In its prequalifying review, CFG will attempt to estimate the assisted living loan amount and the fees and
costs associated with the senior housing mortgage. Actual assisted living loans and actual fees and
expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a
| Refi Const. Sub Rehab Term LTV Type
|FAST FUNDING LOAN PROGRAMS
Up to 90% LTV
Unlimited Cash Out
No Pre-Payment Penalty
Close in 3-5 Days
Non Recourse Loans
Pays up to 3 pts. yield spread
2-5 year adjustable rates
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