About Remington Financial Group, Inc. - Remington offers an extensive network of private and public capital sources to help increase creative financing options - dramatically improving successful close rates for specialized funding and unique financing ventures. Remington delivers expertise and competitive transaction options even in challenging market conditions.
One very active source of capital in today's challenging market are Agency Loans. I've explained more about these below.
1. U.S. Small Business Administration: The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. The SBA offers numerous loan programs to assist small businesses. It is important to note, however, that the SBA is primarily a guarantor of loans made by private and other institutions and does not offer loans to small businesses.
7(a) loans are the most basic and most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses. All 7(a) loans are provided by participating lenders. Not all lenders choose to participate, but most American banks do. There are also some non-bank lenders who participate with SBA in the 7(a) program which expands the availability of lenders making loans under SBA guidelines. 7(a) loans are only available on a partial guaranty basis. The lender and SBA share the risk that a borrower will not be able to repay the loan in full. Under the guaranty concept, commercial lenders (Agency Lenders) make and administer the loans. 7(a) loans may be used for such business purposes as real estate acquisition or expansion, purchase of business, machinery and equipment, furniture and fixtures and working capital
The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 loan program may be used for such business purposes as real estate acquisition or expansion and purchase of machinery and equipment. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. There are about 270 CDCs nationwide, with each covering a specific geographic area. Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped.
2. United States Department of Agriculture: The mission of the United States Department of Agriculture (USDA) is to increase economic opportunity and improve the quality of life for all rural Americans. USDA Rural Development is working to eliminate substandard housing from rural America by helping rural people buy, build or rent decent housing. They also create jobs by funding the growth and creation of rural businesses and cooperatives. Other Rural Development programs help rural communities build or improve community facilities, such as schools, health clinics and fire stations. To accomplish its mission, USDA Rural Development often works in partnership with state, local and tribal governments, as well as rural businesses, cooperatives and nonprofit agencies. USDA offers loans up to $10 million through its Business and Industry program. These loans may be used for such business purposes as real estate acquisition or expansion, purchase of business, machinery and equipment, furniture and fixtures and working capital. The USDA B&I program bolsters the existing private credit structure through the guarantee of quality loans which will provide lasting community benefits. It is not intended that the guarantee authority will be used for marginal or substandard loans or for relief of lenders having such loans.
3. U.S. Department of Housing and Urban Development (HUD): HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination. HUD offers several programs targeting multifamily and healthcare facilities. Within HUD, the Federal Housing Administration (FHA), provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories (Agency Lenders). FHA insures mortgages for the acquisition, new construction, refinancing or substantial rehabilitation of multifamily housing, including senior and student housing as well as manufactured home communities.
4. Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a stockholder-owned corporation chartered by Congress in 1968 as a government-sponsored enterprise (GSE), but founded in 1938 during the Great Depression. The corporation's purpose is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers. FNMA provides multifamily financing for affordable and market-rate rental housing, and operates nationally, in all multifamily markets and under all economic conditions. Eighty-nine percent of the rental housing financed by FNMA lenders is affordable to families at or below the median income of their communities. FNMA provides financing through a nationwide network of Delegated Underwriting and Servicing (DUS®) and other lenders (collectively, Agency Lenders). They also increase the availability of affordable multifamily housing through investments in properties that qualify for federal housing tax credits. Working with nonprofit and for-profit sponsors, FNMA makes funds available for affordable housing through investments in individual properties or groups of properties. FNMA loans may be used for the acquisition, new construction, refinancing or moderate or substantial rehabilitation of multifamily housing, including senior and student housing as well as manufactured home communities.
5. Federal Home Loan Mortgage Corporation (Freddie Mac): In 1970, Congress created Freddie Mac with a few important goals in mind:
- Make sure that financial institutions have mortgage money to lend
- Make it easier for consumers to afford a decent house or apartment
- Stabilize residential mortgage markets in times of financial crisis
To fulfill this mission, Freddie Mac conducts business in the U.S. secondary mortgage market and works with a national network of mortgage lending customers. Freddie Mac provides a full range of competitively priced, reliable mortgage products for the acquisition, new construction, refinancing or moderate or substantial rehabilitation of multifamily housing, including senior and student housing as well as manufactured home communities.
Please see a full list of available programs at http://remingtonfg.com/financial-programs/ .
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