Tuesday, Aug 23 2011 11:07AM
FHA loans for multifamily construction, renovation or financing have now exceeded $10 billion since last October.
The Federal Housing Administration (FHA) recently announced demand to build, finance or renovate multifamily properties nationwide has reached a new high, as the agency stated it has endorsed $10.5 billion in rental housing loans since October 2010.
During the fiscal year 2011, the FHA said it has endorsed roughly more than 1,100 multifamily loans. The agency also stated it recently published revised underwriting and program guidance which should help accelerate and coordinate the loan application process.
"FHA has never been more relevant in making sure the multifamily apartment marketplace continues to function even during these tough economic times," said FHA Acting Commissioner Carol Galante. "While we're seeing record volume, we also recognize we have to accelerate the time it takes us to process these applications so we continue to meet this demand at the very time the market needs us the most."
Many investors are applying for loans to meet the increasing consumer demand for rental properties throughout the country. In July, the Joint Center for Housing Studies of Harvard University released a study which stated there is a substantial need for additional affordable housing nationwide.