Section 213 insures loans for the construction, acquisition, and the rehabilitation of cooperative housing. Each member of Section 213 is able to share ownership of the project and has the right to participate in project operations and occupy a specific unit by purchasing stock.
Purpose
Section 213 enables nonprofit cooperative living corporations or trusts to develop or sponsor the development of housing projects to be operated as cooperatives. Investors also have the ability to provide good quality multifamily housing to be sold to non-profit corporations or trusts upon completion of construction or rehabilitation.
Eligible Uses
Section 213 mortgage insurance can be used to finance properties with at least 5 five units. A project is eligible for mortgage insurance if the sponsor can demonstrate that there is a market demand, that the project is financially self-sustaining. There are also LTV and DSCR limitations. The mortgage is limited to 90% of the appraised value.
Eligible Borrowers
Non-profit housing corporations and trusts are eligible for this program.
FHA Multifamily Mortgages
FHA Special Needs Housing Loans
FHA Health Care Mortgages
| FHA Health Care Mortgages | |
|---|---|
| Hospital Facilities - Section 242 | Residential Care Facilities - Section 232 |