It's been a long time since we saw a real cycle in the multifamily industry. For ten years or more, interest rates have been low, prices have been stable, and apartment demand has been strong. If you’ve been through a cycle or two, it can be sobering. If you’ve never been through a cycle, it can be just plain scary.
With over 30 years in the business, we’ve seen it all. And AGM is here to help with FHA loan products that are designed to be there for you when we are in a cycle. If you'd like to talk 1:1, please contact us. Let us show you how an FHA-insured loan can get your deal done.
We are proud to announce the successful closing of a $24,250,000 mortgage for the new construction of Cascades of Frederick. AGM financed this affordable senior apartment community with a 40-year HUD-insured mortgage under the Section 231 Program.
Higher home prices and rising interest rates have made the average mortgage payment $839 higher than the average apartment rent. Potential home buyers are balking at higher mortgage payments, and many are pulling back, further driving demand for apartments. While banks pull back and tighten underwriting, FHA underwriting is constant: it’s the same in every market, for every apartment project, and over time.
Loan commitments issued by commercial real estate lenders often include a ‘Material Adverse Change’ clause ("MAC"). This clause allows the lender to change the terms of the loan or even withdraw the loan commitment altogether if one or more of the assumptions upon which they first agreed to make the loan changes.
With an FHA-insured loan, you will never see a MAC clause or a retrade at closing.
