32 Days after Submission to HUD, Sims Mortgage Funding (SMF) Refinances 2 Multifamily Rental Properties in Louisiana Totaling $23.4 Million
“When you work with a mortgage banker for 15 years they become as much a part of your team as your architects, engineers and contractors. Sims has consistently delivered positive results and have closed deals that otherwise would have never happened. Their knowledge of each HUD program is unsurpassed, and it is very obvious that every HUD office they have worked with has the utmost confidence and respect for their team. With the respect from the different offices, they are able to reach out to the higher levels of HUD to solve problems. We look forward to working with Sims for many years to come, and we strongly recommend them to any company interested in completing a HUD loan.”
– David Alexander, Managing Partner, Vintage Realty Company
SMF recently closed $6,778,300 and $15,785,600 in loans for Vintage Realty Company for its Magnolia Trace and Waterview at Sugar Mill multifamily properties in Alexandria and Youngsville, LA. Each loan had a high interest rate relative to current market conditions; however, the volatility of the market required that the refinancings be completed as expeditiously as possible.
SMF underwrote two refinancing loans, insured under the HUD Section 223(a)(7) program, which features an expedited application and underwriting process. For the Magnolia Trace application, SMF obtained a key waiver from HUD, eliminating the need for a Project Capital Needs Assessment. This saved loan closing costs, shortened the timeframe to complete the application by approximately 30 days and froze Magnolia Trace’s annual deposit to its reserve fund for replacements at its current amount.
Waterview was approved by HUD within 16 days and Magnolia Trace 16 days later. The GNMA securities issued for the loans that were being prepaid require interest to be paid through the end of the month, regardless of when the loan is paid off. By coordinating the closings of the new loans on the same day on the last day of the month, SMF eliminated the “double payment” of interest on the loans being refinanced and the new loans. Closing two loans on the same day also minimized the client’s legal costs.
By moving quickly to complete the Section 223(a)(7) loan applications and obtaining HUD approvals on a timely basis, SMF delivered two effective refinancings for its longstanding client, Vintage Realty Company. The combined interest savings will be approximately $4,650,000 over the new loan terms; annual cash-flow savings on a combined basis is approximately $210,000.
The Magnolia and Waterview at Sugar Mill loans are the 21st and 22nd loans SMF has closed for Vintage.
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