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Financing Programs Available
Fannie Mae Small Loan Program
Local Bank Programs
HUD 221-d4 Permanent Financing Program
Bridge / Alternative Financing
Fannie Mae DUS Program
Rooming Houses
HUD 223-F Loan Program for Permanent Financing

This program is ideal for permanent financing on apartment building transactions. Warren Gomberg brings a wealth of experience to this arena as he closed over 100 HUD loans in 1995 and 1996. Highlights of the loan program include:

Maximum Loan-to-Value / Acquisition Cost

  • 85% - Cash-out allowed when 80% of the value exceeds the existing debt plus transaction costs.
  • up to 92.5% CLTV with Seller second mortgage of up to 7.5%

Loan Term and Amortization

  • Up to 35-year loan term   –   350-year Amortization (Fully Amortizing)

Fixed Rate

  • Yes - Current rates are in the mid 5's

Minimum Loan Amount

  • Not cost effective for loans below $4,000,000

Maximum Loan-to-Value / Acquisition Cost

  • 85% - Cash-out allowed when 80% of the value exceeds the existing debt plus transaction costs.

Fixed Rate

  • Yes

Eligible Properties

  • Existing Multifamily at least three years old.  Detached structures and row houses eligible.

Eligible Borrowers

  • Single Asset Entity (for both profit and non-profit).

Occupancy Requirement

  • Underwritten at a maximum 95% occupancy.

Tax and Insurance Escrows

  • Monthly deposits required.


  • Non-recourse

Commercial Space

  • Maximum 20% of net rentable area and maximum 20% of effective gross income.

Required Reports

  • Appraisal, Physical Needs Assesment (PCNA) and Phase 1 Environmental.


  • Negotiable.  Generally three year lockout with declining percentage of principal thereafter up to 10 years (7-6-5-4-3-2-1).


  • Subject to Lender and HUD approval and payment of assumption fee.

Origination Fee and Good Faith Deposit

  • Both these fees are negotiable, based on project type.

Expense Escrow

  • Yes, sufficient to cover Lender’s expenses and third-party report costs.

HUD Application Fee

  • Non-refundable fee of $3 per $1,000 (0.3%) of the mortgage amount due to HUD with the firm commitment submission package.

HUD Inspection Fee

  • $30 per unit when repairs are less than $3,000 per unit. Otherwise 1% of the cost of repairs.

Legal/Closing Fee

  • Borrower pays Lender’s counsel fee and miscellaneous closing costs.

Rehabilitation Qualifications

  • Repairs must exceed $6,500 per unit (adjusted for local high cost factor), 15% of the appraised value or replacement of two or more major building systems.

HUD Mortgage Insurance Premium (MIP)

  • HUD sets the cost of the FHA Insurance.  The initial MIP is due to HUD at closing, and the MIP is escrowed monthly thereafter.

Davis Bacon

  • Not applicable to this program

Since it's founding in June of 1998 Gomberg Financial Services has originated over 425 commercial loans.

If you would like more information on any of our commercial loan programs, please contact our office by phone (781-631-7929) or send us an email.