HUD recently published Housing Notice 2012-20, FHA Underwriting Instructions for Projects Converting Assistance under the Rental Assistance Demonstration. This Housing Notice and accompanying Mortgagee Letter provide underwriting guidelines for FHA-approved MAP lenders applying for FHA multifamily mortgage insurance on transactions involving properties converting rental assistance under the Department’s Rental Assistance Demonstration Program (RAD).
HUD expects FHA multifamily mortgage insurance to be a common source of debt financing for Public Housing Authorities (PHAs) and owners seeking to leverage Section 8 assistance through the RAD program. Housing Notice 2012-20 addresses underwriting criteria, eligibility requirements, application exhibits and the process for HUD application review when an FHA insured mortgage is proposed for a project converting assistance under RAD.
Click here to read Housing Notice 2012-20.
