The Loan Modification Program offers owners of MaineHousing-financed multi-family properties the opportunity to restructure MaineHousing debt by modifying interest rates, extending loan terms, or both. Loan modifications generally lower debt service payments in return for extended project affordability.
Borrowers requesting modification of an eligible loan must modify all other eligible MaineHousing loans secured by the same project.
Loans subject to an existing prepayment restriction are not eligible for a reduction in interest rate, but may apply for a term extension. A loan may be modified only once.
Modified loan terms and conditions may vary by the type of loan refinanced. Any existing MaineHousing loan modified by this program is subject to the provisions of MaineHousing’s Multi-family Development and Supportive Housing Loans and Grants Rule.
MaineHousing borrowers in good standing with the following types of loans are eligible to apply:
- Loans secured by a first mortgage and security agreement on a project financed through the Rental Loan Program five or more years ago.
- Loans secured by a first mortgage and security agreement on projects which are subject to a New Construction or Substantial Rehabilitation Housing Assistance Payments Section 8 Contract or Projects Converted from Section 23 Leased Housing Program to Section 8 Housing Assistance Payments Contracts.
- Loans on projects which are subject to the FAF (Financial Adjustment Factor) Refunding Agreement between the U.S. Department of Housing and Urban Development (HUD) and MaineHousing dated July 23, 1992, provided the savings generated are used for deferred operating expenses, capital improvements, reserve funding, or other eligible uses as further described in a plan approved by HUD and MaineHousing.
Property owners should submit a cover letter requesting modification of an eligible loan and the appropriate program application. Successful borrowers generally will have 90 days to close from the date of the loan modification commitment letter.
For more information on program eligibility and terms and how to apply, download the Loan Modification Program Guides, see the related documents or contact:
Asset Management Dept