Mortgages USA Multifamily Financing

MORTGAGES USA previously announced its corporate plan to add a Multifamily Finance Division to its long-standing Residential Finance service. This up-dated Advisory is to inform you that such plan has launched. Mortgages USA is now a HUD-Approved Mortgagee for Multifamily Financing, in addition to its continued approval as a HUD-Approved Mortgagee for Residential Financing.

BERNARD P. "BUD" MALONE is now a partner in the Company as well as Senior Vice President in charge of our Multifamily Division. Bud is a real estate lawyer by profession and was a founder and President of MALONE MORTGAGE COMPANY in Dallas through its operating years (1990-2005), which became one of the largest (top 5 nationally) in terms of production of HUD/FHA Insured Multifamily Loans in the nation. In 2005, Malone Mortgage Company was acquired by KeyCorp Real Estate Capital Markets, Inc., a subsidiary of KeyBank, Columbus, Ohio.

Our Multifamily Division is ready to serve the rental housing industry, particularly with the tools afforded under the HUD/FHA Multifamily Programs that include, but are not limited to:

Section 221(d)(3) long-term, fixed-rate, non-recourse financing available to non-profit sponsorship for the new construction and substantial rehabilitation of affordable rental housing projects nationwide.

Section 221(d)(4) long-term, fixed-rate, non-recourse financing for the new construction and substantial rehabilitation of market rate projects nationwide.

Section 232 long-term, fixed-rate, non-recourse financing for the new construction and substantial rehabilitation of market rate nursing homes, intermediate care and assisted living projects nationwide.

It should be noted, with respect to the foregoing, that the programs offer both construction and permanent financing in pre-closed loans. This means new developments and substantial rehabilitation projects get their construction loans in the form of FHA-insured advances over the construction period on an interest-only basis, along with the FHA-insured, long-term permanent loan upon completion of construction. No other financing alternatives - not Fannie Mae, Freddie Mac, CMBS, Hedge Funds, or the insurance industry - that are active in today's market can provide as full a financing facility as this with respect to new construction /substantial rehabilitation projects.

For existing rental housing that needs refinancing and/or financing for purchase, the HUD/FHA Programs we use include:

Section 223(f) refinancing or purchase of existing apartments or health care facilities.

Section 223(a)(7) refinance of existing FHA-insured loans on apartments.

Bud Malone has many professional years of experience with HUD Multifamily Programs and of successfully guiding eligible proposals through the paperwork and red-tape of federal programs. He is looking forward to helping MORTGAGES USA become a significant participant in the area of providing finance for rental housing.

MORTGAGES USA looks forward to serving your multifamily financing needs. We hope you will consider HUD and when you do, you will think of "BUD" and MORTGAGES USA.