FHA 241(a) Supplemental Loans

Our FHA 241(a) supplemental loans are designed to empower property owners with the financial tools needed to take their investments to new heights. Partner with us to elevate the success of your HUD-insured properties.

Competitive Rates

Flexible
Terms

FHA
Backing

Streamlined
Processes

Expert
Guidance

FHA 241(a) Loan Terms and Requirements

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Loan Term & Amortization

Typically aligns with the term of the HUD first mortgage. It is fully amortizing.

Maximum loan amount

The financing will be determined as the lesser of 90% loan to cost, 90% loan to value, or a 1.11 Debt Service Coverage Ratio (combined first and second).

Rate Structure

Fixed interest rate

Eligible Properties

Multifamily residences and medical facilities holding an active HUD-insured initial mortgage.

Eligible Borrower

A singular asset entity, whether for-profit or nonprofit.

Recourse

Nonrecourse financing contingent upon adherence to the HUD Regulatory Agreement.

Prepayment

Generally, set at 10% in the first year, decreasing by 1% annually; alternative prepayment options may be considered based on prevailing market conditions.

Assumable

Contingent upon approval from both HUD & CID, along with the payment of an assumption fee.

Davis–Bacon Act

Applicable to this program

HUD mortgage insurance premium (MIP)

For multifamily properties, the annual Mortgage Insurance Premium (MIP) rates vary: 0.95% for market rate properties, 0.35% for affordable properties, and 0.25% for broadly affordable or energy-efficient properties.

In the residential healthcare sector, without Low-Income Housing Tax Credits (LIHTC), the rate is 0.72%, while with LIHTC, it is 0.45%.

Hospitals have an annual MIP rate of 0.65%.

FHA 241(a) financing Loans & Its Benefits

What is FHA 241(a) Loan?

FHA® 241(a) supplemental loans are a financial tool provided by the Federal Housing Administration (FHA) to support repairs, additions, or improvements to existing properties with HUD-insured first mortgages.

These loans are designed to enhance and preserve the value of HUD-insured properties by providing additional funding for necessary enhancements.

Unlocking Opportunities with FHA® 241(a) Financing

Strategic Property Enhancement

FHA® 241(a) supplemental loans are specifically crafted to empower property owners to undertake essential repairs, additions, or improvements, enhancing the overall value and functionality of HUD-insured assets.

Seamless Approval Process

Our streamlined approval process expedites the securing of FHA® 241(a) supplemental loans, minimizing delays and providing you with timely access to the funds needed for your property improvements.

Preservation of Asset Value

By addressing repairs, additions, or improvements, our FHA® 241(a) supplemental loans contribute to the preservation and potential appreciation of your property's market value.

Key Feature of FHA 241(a) Loans

FHA® 241(a) supplemental loans often come with competitive terms, providing borrowers with a cost-effective solution for property improvements while maintaining compliance with HUD guidelines.

Streamlined Approval Process

Say goodbye to lengthy paperwork and complex procedures. Our FHA® 241(a) loans offer a streamlined approval process, ensuring a smoother experience for borrowers.

Lower Interest Rates

FHA® 241(a) loans typically have lower interest rates compared to traditional commercial loans, making it a more affordable option for borrowers.

Longer Repayment Terms

This loan offers longer repayment terms, allowing borrowers to spread out their payments over a longer period of time and make the investment in their property more manageable.

No Cash Outlay

With FHA® 241(a), borrowers do not have to come up with a large sum of cash for repairs or improvements. This loan covers the entire cost of the project, saving borrowers from having to dip into their own funds.

Simplified Application Process

As an experienced lender, we understand that time is of the essence when it comes to making necessary upgrades on your property.

Non-recourse Financing

Rest assured that your personal assets are protected. Our FHA® 241(a) loans typically provide nonrecourse financing, ensuring that your personal assets are not at risk in case of default.

Location
We Cover

50 States & US Territories

Capital Investors Direct provides commercial hard money loan financing options in the following geographic locations of the United States:

200 200 MSA Tier I & Tier II Cities

Maryland, Texas, Florida, Utah, Colorado etc. We offer CRE Bridge Loan in top cities like Denver, Chicago, Colorado, San Diego etc.

How it Works?

Capital Investors Direct funds different commercial properties across the country. Below are few commercial properties we lend hard money for –

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01 Fill Out the Form

Apply for a commercial property loan in
5 minutes by filling out the form

02 Get Approval

We will get back to you within 24 hours
with a written disclosure of all loan terms

03 Loan Funded

Within days, the money will be credited
to your account.

Why Choose Us?

We go above and beyond to add to our list of satisfied customers and ongoing clientele We go above and beyond to add to our list of satisfied customers and

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01

Streamlined Refinancing Process

We have designed a streamlined application and approval process, making it easier for clients to navigate and secure financing without unnecessary delays.

02

Competitive Interest Rates

Our commitment to providing favorable terms underscores our dedication to your success.

03

Specialized FHA Financing

Our proficiency in navigating FHA programs ensures efficient and effective solutions for your multifamily property financing needs.

04

Transparent Communication

We believe in keeping our clients informed and empowered, fostering trust and confidence.

Blogs &
Articles

Capital Investors Direct funds different commercial properties across the country. Below are few commercial properties we lend hard money for –

SBA 504 Loans

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FHA 241(a) Loans