Apartment Building

FHA Mortgage Insurance For Cooperative Housing: HUD Section 213

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.

Section 213 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 Apartment Loans - HUD Multifamily Mortgages