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Financing Programs Available
Fannie Mae Small Loan Program
Local Bank Programs
HUD 223-f Permanent Financing Program
Bridge / Alternative Financing
Fannie Mae DUS Program
Rooming Houses
HUD 221d4 Rehab Loans

This program is ideal for low vacancy multifamily properties in need of significant rehab. Warren Gomberg brings a wealth of experience to this arena as he closed over 100 HUD loans in 1995 and 1996. Highlights of the loan program include:

Current Interest Rate

  • Current rates are in the mid 5's

Maximum Loan Amount

  • Determined by the lowest of: a) 90% of eligible development costs (100% for non-profit), b) 1.11 Debt Service Coverage (1.05 for non-profit), c) HUD’s statutory mortgage limits, d) For rehab add 90% of the “as is” value (100% for non-profit) plus 90% of the total development cost (100% for non-profit).

Minimum Loan Amount

  • Not cost effective for loans below $5,000,000

Loan Term and Amortization

  • Construction loan plus up to 40-year permanent loan   –   40-year Amortization

Fixed Rate

  • Yes, for both Construction and Permanent.

Eligible Properties

  • Multifamily projects to be built or projects undergoing substantial rehabilitation.  Detached structures and row houses eligible.

Eligible Borrowers

  • Single Asset Entity (for both profit and non-profit).

Occupancy Requirement

  • Underwritten at a maximum 95% occupancy.

Tax and Insurance Escrows

  • Monthly deposits required.


  • Non-recourse for both Construction and Permanent.

Commercial Space

  • Maximum 10% of gross floor area and maximum 15% of potential gross income.

Required Reports

  • Market Study, Appraisal, Architect/Cost Review and Phase 1 Environmental.


  • Negotiable.  Generally three year lockout with declining percentage of principal thereafter up to 10 years (7-6-5-4-3-2-1).


  • Subject to Lender and HUD approval and payment of assumption fee.

Origination Fee and Good Faith Deposit

  • Both these fees are negotiable, based on project type.

Expense Escrow

  • Yes, sufficient to cover Lender’s expenses and third-party report costs.

HUD Application Fee

  • Non-refundable fee of $3 per $1,000 (0.3%) of the mortgage amount due to HUD with the firm commitment submission package.

HUD Inspection Fee

  • 0.5% of the mortgage amount for new construction or 0.5% of the cost of repairs for substantial rehab.

Legal/Closing Fee

  • Borrower pays Lender’s counsel fee and miscellaneous closing costs.

Rehabilitation Qualifications

  • Repairs must exceed $6,500 per unit (adjusted for local high cost factor), 15% of the “as rehabbed” appraised value or replacement of two or more major building systems.

HUD Mortgage Insurance Premium (MIP)

  • HUD sets the cost of the FHA Insurance.  The MIP is paid in advance for the construction period and is escrowed monthly after amortization commences.

Davis Bacon

  • Davis Bacon labor standards and wage requirements apply to construction work and rehab work.

Since it's founding in June of 1998 Gomberg Financial Services has originated over 425 commercial loans.

If you would like more information on any of our commercial loan programs, please contact our office by phone (781-631-7929) or send us an email.