Dealmaker: Sims Mortgage Funding Closes $23M for Louisiana Multifamily Properties

Sims Mortgage Funding, Montvale, N.J., closed $23.4 million in FHA-insured loans to refinance two Louisiana multifamily properties.

The firm closed $6.7 million and $15.7 million in loans for Magnolia Trace and Waterview at Sugar Mill, located in Alexandria and Youngsville, La. respectively.

Kerrie Tomasiewicz, Sims Mortgage Funding Executive Vice President, served as MAP underwriter for the loans. She said the refinancings will generate nearly $225,000 in annual cash flow savings and interest and mortgage insurance premium savings over the life of the new loans will approach $4.65 million.

Tomasiewicz said the volatility of the market required the refinancings get completed as expeditiously as possible. Sims Mortgage Funding underwrote two loans, insured under the HUD Section 223(a)(7) program, which allows an expedited application and underwriting process. For Magnolia Trace, Sims obtained a waiver from HUD that eliminated the need for a Project Capital Needs Assessment. “This saved loan closing costs, shortened the timeframe to complete the application by approximately 30 days and froze the project’s annual deposit to its reserve fund for replacements at its current amount,” she said. 

HUD approved Waterview at Sugar Mill within 16 days and Magnolia Trace 16 days later, Tomasiewicz said. “By coordinating the closings of the new loans on the same day on the last day of the month, we eliminated the ‘double payment’ of interest on the loans being refinanced and the new loans,” he said. “Closing two loans on the same day also minimized the client’s legal costs.”