Advice on FHA refinancing!!!

My partner and I are about to purchase a 96 unit property in wisconsin with an assumable fha 5.5% 30 year fixed. We what to refinance with a lower rate about 4.25- 4.8%, 40 year fha fixed rate. Any advice?

I would check to see what availability is for these loans?
Also find out seasoning requirements and specific underwriting requirements?

I am not sure whether FHA is offering these apartment programs right now!

I’ve never heard of FHA mortgages being assumable, nor do they offer financing for properties over 4 units, maybe you should verify the info on the apts ur buying first…

FHA loans are qualifying assumable which means as long as you qualify for the loan you can assume it. Also, FHA does offer large multi-family loans. The 40 year amortization is what I would question.

You won’t get that rate on multi no matter how good your credit score. If you can assume it at 5.5% that is pretty damn good for a 96 unit complex.

I’m always learning on here!

  1. If you assume an FHA mortgage, how does that not trigger the DOS clause?
  2. Where can I find more info on FHA multifamily loans? I wasn’t even aware they did these…I’ve never seen anything on them on FHA website…

There isn’t a bank in the universe that is going to excercise that clause right now. They want good loans and they aren’t going to jeopardize that by trying to call the loan.

If you assume the loan then you do not have a due on sale caluse. The note is in your name along with the title. Keep in mind you will have to qualify to assume the loan.

Thank you for your help everybody. I’ll be closing this deal shortly.

If anybody has any questions about this deal feel free to ask.

Did you close this deal?

I agree with others above that 5.5% on a commercial building is an awesome rate. And, I presume the 30-year fixed has been in place for a while, so the term remaining would be less than 30. I would personally be strongly against a 40-year anything right now, because you’re not amortizing squart for the first 25-30 years.

So, to the questions “any advice?”, that would be my advice. Instead of getting the new loan, try to get the seller to carry back a second at a reduced rate, if it’s a reduced payment that you’re after. After all, you’re probably looking for the reduced payment because the seller is wanting more profit, so if you’ll give more in purchase price, maybe they will take less up front in order to get more on the backend.