Le Lézard
Subject: Funding

Harper Capital Finances $56MM Multifamily Purchase with HUD-insured Loan in Under 5 Months


Harper Capital, a leading lender specializing in HUD-insured loans, today announced the successful closing of a $56 million purchase using HUD's Section 223(f) Acquisition loan program.

The Class A, 320-unit property in Texas was built just two years ago. The buyer, a long-time Harper Capital client, went into contract May 6 with a 1031 Exchange deadline of September 25.

Nathan Schuss, Harper Capital's CEO, said, "Many buyers use interim bridge financing to close on a purchase before bringing it to us for a permanent takeout through HUD. Our client wanted us to go straight to HUD to avoid the added cost and reduced leverage of a bridge."

The purchase closed on September 22, beating the 1031 deadline and just 140 days from contract. The transaction also enabled the borrower to lock in a historically low interest rate, fixed for the 35-year, fully amortizing loan term. Harper Capital helped the project receive green certification, which reduced the Mortgage Insurance Premium (MIP) rate to HUD's 25 basis-point minimum. Schuss added, "We got started as soon as the PSA was signed and made sure all third-party reports and underwriting were expedited. We also had to meet special HUD requirements for projects less than three years old."

The HUD-insured loan amount was $47,260,000, indicating a loan-to-value ratio of 84%. Schuss concluded, "HUD's Fort Worth office understood the time sensitivity and did a fantastic job with their review. Our client was delighted when he was able to close in four and a half months. "

Harper Capital Partners, LLC, is an FHA/HUD-approved mortgage lender specializing in multifamily and healthcare HUD-insured debt solutions nationwide, enabling acquisitions, refinances, substantial rehabilitation, and ground-up development. Its team has experience working on more than $5 billion of transactions throughout the United States. www.harpercap.com



News published on and distributed by: