Construction of FHA loan site begins, site is scheduled to open in October
Posted October 01, 2018 12:13:38Construction of a $1.5 billion FHA-insured loan site in Las Vegas is expected to begin this fall.
The project will allow lenders to make a loan with lower interest rates and will also provide jobs to the Las Vegas area, according to the U.S. Department of Housing and Urban Development.
Construction began this spring on the project, which is expected in early October, when construction crews will be putting the finishing touches on the site, which sits on a 4.5-acre tract of land between the MGM Grand and Mandalay Bay casinos.
It will be the first FHA insured loan project in Nevada.
The loan site will provide an additional 4,400 jobs in Las Vegas.
The Las Vegas Economic Development Corp. will help oversee the construction of the project.
Construction will begin next year and be completed by the end of 2020, according a HUD press release.
Construction is expected for a 1.5 million square foot loan facility that is intended to support 1,000 homes, according HUD.
HUD estimates the loan site’s annual housing supply to be more than 5,000 housing units, about the same as the average residential housing supply in Las Angeles County, which has about 11,400 housing units per 1,600 residents.
The $1 billion loan will allow borrowers to make payments of as little as 1.25 percent of their home value.
The FHA will provide a 20 percent downpayment.
Construction will be completed over several years, HUD said.
The cost of the loan will be paid through a new loan facility called a Federal Home Loan Bank.
The FHA’s Home Loan Guarantee Program will also be used to finance the project in the event of a home foreclosure, according the HUD press statement.
Construction on the loan facility will be funded through a federal loan program known as the Homeowner-Owned Housing (HO-HOA) Program.
The HOA Program provides low-income housing to low- and moderate-income households, with a goal of helping to stabilize a home during a foreclosure.
HUD has more details on the HOA program, including how the project is designed to be financed.