Federal Housing Authority   (FHA)


The Federal Housing Authority currently has 88 lenders within their MAP program. Each lender is assigned a particular market. There are 18 different mortgage programs within the FHA. The FHA is part of Housing and Urban Development, which is a department in the executive branch. The FHA was created to support the development and rehabilitation of any building in which people live. HUD offers a wide range of programs for the purchase and rehabilitation of multifamily properties including: apartments, condominiums, student housing, manufactured home parks, elderly housing/assisted living facilities, and healthcare facilities. In 2012, the department insured mortgages for 644 projects totaling $5.6 billion.


For a description on all 18 multi-family programs see the HUD Multifamily homepage. One of the most popular programs is the FHA Section 223(f). This program offers permanent financing for existing (at least three years old) properties. It provides long-term, fixed-rate, fully amortized, and fully assumable non-recourse financing. Borrowers can be for-profit or non-profit entities.


Origination Fees:

Can be added to of the loan amount (up to 3.50%).

Loan Amount:

No Maximum. However, loans under $2.5 million are generally not worth the cost.

Loan Term:

Up to 35 years or 75% of the remaining economic life.


Up to 40 Years.

Loan to Value:

Maximum of 85%.