Fantini & Gorga has arranged $3.598 million financing for a 36-unit apartment complex with street-level commercial space downtown. This transaction involved Section 223(a)7 mortgage insurance provided by the Federal Housing Administration (FHA), which is designed to allow existing FHA borrowers to lower mortgage payments and to fund modest improvements to ensure the integrity of the asset.
Tim O'Donnell, principal and managing director at Fantini & Gorga, placed the loan with Eastern Mortgage Capital, with whom Fantini & Gorga has a correspondent relationship. O'Donnell was assisted in the transaction by Mark Whelan, director.
"We are extremely pleased to have been able to improve the bottom line of our client through the reduction of debt service payments, as well as provide capital to correct a sidewalk deficiency leftover from the building's prior use. FHA-sponsored mortgage insurance programs have experienced added interest in what is still a credit constrained environment. In addition to the low interest rates available, these programs allow for a true non-recourse financing as there are no carve-outs," said O'Donnell.
Fantini & Gorga (www.fantinigorga.com) is one of New England's leading mortgage banking firms. Headquartered in Boston, Fantini & Gorga specializes in assisting its clients in arranging traditional debt, mezzanine, and equity financing for all commercial property types throughout the United States.