Apartment and Healthcare Loans - Status April 24 2009

The State of Apartment and Healthcare Finance - by Kendall Realty Advisors, Scott Kendall VP-CFO

FHA 223(f) Rates in 5.25% to 5.75% range including MIP
Large Cash out Requests are getting looked at very carefully. 1.17 to DSC
80% cash out loans (Maybe) 85% loans to purchase or up to 85% refinance no cash out.


Fannie Mae Freddie Mac Multifamily Rates about 5.5% 75% loan to value cash outs.

80% Purchase transactions. 1.25 to 1 DSC

FHA 221(d)(4) - Affordable Deals more likely to be approved. Market Rate Deals ONLY IN VERY STRONG MARKETS (ex: Downtown Chicago new construction not likely to be approved).

In conclusion, refinance money is available but large cash outs transactions will not be approved above 75% Fannie Mae 80% FHA (Kendall Opinion)

New Construction Waivers and 85% loans will be approved for stabilized recent construction transactions as part of the emergency waiver.

All in All apartment lending even with more conservative lending practices is in the best shape of commercial lending programs due to the three agency programs.

FHA 232 Lean  The FHA 232 LEAN program is great for rehabilitation loans to meet new federal safety standards and for assisted living facilities.

FHA 242 Hospital Loans - Program much faster and streamlined. We are working on several transactions, the rates are low but higher than multifamily loan rates, since we can not use GNMA to provide a AAA rating.