Pnc Multifamily Loans: What You Need To Know

PNC Bank, through its PNC Real Estate arm, provides commercial real estate financing and related services. PNC Real Estate offers a comprehensive set of commercial real estate finance solutions that span the life of a project, from acquisition and construction to permanent financing. PNC Multifamily Capital, a division of PNC Real Estate Finance, provides lending services, equity investments, and equity investment services relating to Low-Income Housing Tax Credit, New Markets Tax Credit, Historic Tax Credit, and affordable housing preservation investments. PNC has provided financing for several multifamily housing properties, including Beechwood Apartments in Athens, Georgia, and Greentree Village Apartments in Beaumont, Texas.

PNC MultiFamily Capital

Additionally, PNC MultiFamily Capital offers refinancing options for existing multifamily properties. They have successfully reduced loan interest rates for properties like Greentree Village Apartments in Beaumont, Texas, by refinancing a Federal National Mortgage Association (Fannie Mae) loan to an FHA-insured Sec. 223(f) loan. This not only lowered the interest rate but also preserved rental housing stock in the area.

PNC Real Estate Finance

PNC Real Estate also offers treasury and investment management, access to capital markets, commercial mortgage loan servicing, and other products and services to clients that develop, own, manage, or invest in commercial real estate. PNC provides debt and equity capital to support projects that address the shortage of affordable rental and senior housing options, spur economic development, rehabilitate historic sites, and provide critical community services.

FHA-insured refinancing

PNC MultiFamily Capital, a division of PNC Real Estate Finance, provides financial services for the multifamily housing industry. It specializes in financial solutions for the acquisition, development, permanent financing, and operation of commercial real estate. PNC MultiFamily Capital has secured FHA-insured refinancing for several multifamily properties.

FHA-insured construction loans offer up to 40 years of fixed-rate financing, with additional financing available during the construction period. The HUD 221(d)(4) program, for example, provides fixed-rate construction loans for multifamily developments. The FHA also offers longer-term, fully amortizing loans, such as the HUD 223(f) insured loans, which can be amortized for up to 35 years.

FHA and HUD multifamily loans have a AAA credit rating due to their government insurance backing. This results in lower interest rates compared to similar loans from other institutions. Additionally, HUD multifamily loans offer competitive interest rates, long terms, high leverage allowances, and full amortization. They are also non-recourse loans, which means they do not pursue the borrower's assets in case of default. These features make them attractive for borrowers seeking to maximize profits and minimize financial risk.

Low-Income Housing Tax Credit

PNC MultiFamily Capital, a division of PNC Real Estate Finance, provides financing services for multifamily housing properties. PNC Real Estate Finance is a part of The PNC Financial Services Group, Inc., which is headquartered in Pittsburgh and is one of the largest diversified financial services organizations in the US.

PNC MultiFamily Capital provides lending services, equity investments, and equity investment services relating to the Low-Income Housing Tax Credit (LIHTC) program. The LIHTC program is a federal government initiative enacted as part of the 1986 Tax Reform Act. It provides a tax incentive to construct or rehabilitate affordable rental housing for low- and moderate-income households. The federal government issues tax credits to state and territorial governments, which then award them to private developers of affordable rental housing projects through a competitive process.

The LIHTC program incentivizes developers to create low-income housing by offering them a 10-year credit on their federal income taxes. The credits can subsidize either 30% or 70% of the costs to create low-income units in a development project. A 30% subsidized LIHTC, also known as a 4% LIHTC, is typically used for property acquisition and rehabilitation, while the 70% subsidized LIHTC, or 9% LIHTC, is usually reserved for new construction.

To secure LIHTC credits, a developer must first propose a project and apply to the state's Housing Finance Authority (HFA). Developers can seek out individual LIHTC investors or partner with a syndicator, which pools multiple real estate projects into one LIHTC fund. The syndicator then sells these tax credits to investors, reducing the risk for individual investors. Investors in LIHTC projects are typically corporations with sufficient income tax liability to fully utilize nonrefundable tax credits, such as financial institutions.

Home Lending Options

PNC Real Estate is a leading provider of banking, financing, and servicing solutions for commercial real estate clients across the country. Their comprehensive array of capabilities includes acquisition, construction, and permanent financing for public and private developers and investors.

PNC offers a range of home lending options, including:

Commercial Real Estate Finance Solutions

PNC Real Estate offers finance solutions that span the life of a project, from acquisition and construction to permanent financing. They provide financing to regional owners and operators, large national developers, real estate funds, and REITs across various property types, including multifamily, office, industrial, retail, lodging, and self-storage.

Multifamily Capital

PNC Multifamily Capital, a division of PNC Real Estate Finance, provides lending services, equity investments, and investment services related to Low-Income Housing Tax Credit (LIHTC), New Markets Tax Credit (NMTC), Historic Tax Credit (HTC), and affordable housing preservation investments. They work with organizations to address the shortage of affordable rental and senior housing options and support projects that drive economic development and provide critical community services.

Agency Financing

PNC Real Estate offers agency financing through Fannie Mae, Freddie Mac, and FHA loans. They also provide tax credit capital investments to support projects and communities.

Home Equity Line of Credit (CHELOC)

PNC offers a Choice Home Equity Line of Credit, which allows customers to leverage the equity in their homes to access funds for various purposes. However, this product is not available in all states, including Alaska, Hawaii, Louisiana, Mississippi, Nevada, and South Dakota.

Refinancing Options

PNC also provides refinancing options for homeowners. They can assist in evaluating whether refinancing at a longer or shorter repayment term aligns with an individual's financial goals, understanding that it may decrease or increase the total interest paid over the life of the loan.

PNC is committed to creating tailored solutions to meet the diverse needs of its clients, whether they are seeking straightforward or more complex financial strategies.

Frequently asked questions