FHA Commercial Loans

Long-Term FHA/HUD Financing for Multifamily & Eligible Commercial Properties

FHA commercial financing can provide attractive long-term loan options for qualified multifamily, healthcare, and other eligible real estate projects.

At SBAcommercialloans.com, our financing capabilities extend beyond SBA loans. We help commercial real estate owners, investors, and developers explore FHA/HUD commercial loan programs for eligible property acquisitions, refinances, new construction, and substantial rehabilitation projects.

For qualified properties, FHA-insured financing may offer long-term loan structures, competitive interest rates, and financing designed specifically for multifamily and certain healthcare real estate.

Program Overview

What Is an FHA Commercial Loan?

FHA commercial loans are mortgages originated through approved lenders and insured by the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD).

These programs are different from residential FHA loans used by individual homebuyers. FHA/HUD commercial programs primarily support eligible multifamily housing and certain healthcare facilities. Because the mortgage is FHA-insured, qualified projects may benefit from attractive long-term financing.

Benefits

Potential Benefits of FHA Commercial Financing

Depending on the program and transaction, potential advantages may include:

Competitive interest rates

Long-term fixed-rate financing

Extended amortization

Acquisition and refinance options

Construction financing

Substantial rehabilitation financing

Non-recourse structures on qualifying transactions

Affordable & Market-Rate Housing

Programs for certain healthcare properties

Actual terms and eligibility depend on the applicable FHA/HUD program and underwriting requirements.

Eligibility

Eligible Property Types

FHA/HUD commercial financing may be available for qualifying:

Apartment buildings

Multifamily communities

Market-rate housing

Affordable housing

Certain senior housing

Skilled nursing facilities

Assisted living facilities

Board-and-care facilities

Other eligible housing and healthcare projects

Not every commercial property qualifies for FHA financing. Traditional office, retail, industrial, and similar properties generally require SBA, conventional, bridge, DSCR, or other commercial financing.

Underwriting

How Are FHA Commercial Loans Underwritten?

HUD/FHA underwriting considers both the property and the borrower. Factors may include:

Property value

Net Operating Income (NOI)

Debt Service Coverage Ratio (DSCR)

Loan-to-value or loan-to-cost

Occupancy and operating history

Property condition

Borrower financial strength

Ownership and management experience

Market conditions

Third-party reports and HUD requirements

Construction and substantial rehabilitation projects typically require additional review of development costs, plans, specifications, construction experience, and project feasibility.

Comparison

FHA vs. Fannie Mae & Freddie Mac

FHA/HUD, Fannie Mae, and Freddie Mac can all provide multifamily financing, but the programs have different structures and underwriting requirements.

FHA/HUD can be particularly attractive for borrowers seeking long-term financing and for qualifying construction or substantial rehabilitation projects.

Fannie Mae and Freddie Mac may provide alternatives for stabilized multifamily acquisitions and refinances.

Our team can evaluate multiple programs rather than limiting your transaction to one financing source.

Next Step

Find the Right FHA/HUD Loan

Tell us about your property, number of units, occupancy, purchase price or value, net operating income, requested loan amount, and financing objective.

Our commercial lending team can evaluate FHA/HUD, Fannie Mae, Freddie Mac, Bridge, DSCR, SBA, and other commercial financing options for your transaction.

Explore FHA Commercial Financing

SUBMIT YOUR PROPERTY FOR REVIEW

FHA/HUD financing is subject to current federal program requirements, lender underwriting, property eligibility, appraisal, third-party reports, borrower qualifications, and program availability.