It's time to refinance some existing loans on our apartment portfolio. I've been joking with my colleagues that we must be the last people on earth still making payments on our CMBS as that business has had such high delinquency rates in recent years.
In the past, we've placed permanent financing with small community banks (long time ago), Fannie Mae, Freddie Mac, CMBS, and HUD.
Today we're attracted more and more to the HUD 223(f) program with its historically low rates and 35 year amortization. Our focus is on building cash-flow rather than debt-financed distributions and this program helps us achieve that. We also like that the loans terms are reasonable when it comes to assumability.
Seek out a good MAP lender and be prepared for some brain damage. It can take up to 9 months to get HUD's commitment, so you're definitely carrying some interest rate risk there. But at sub-4% rates, it's hard to turn down.