Mr. Watkins has over 24 years of experience working in the commercial real estate industry. He is a seasoned affordable housing professional/HUD loan originator with a background underwriting loans with LIHTC, Tax-Exempt Bonds and other public and private loan and grant resources while working with the Illinois Housing Development Authority (IHDA). Currently, Terrance is responsible for originating multifamily and healthcare mortgages via HUD’s and the USDA’s insurance programs. He works directly with his clients and oversees the loan origination process from initial loan sourcing to initial loan delivery/closing. Terrance recently closed an Interest Rate Reduction (IRR) transaction in Illinois where he was able to assist his client in reducing their mortgage interest rate by more than 200 basis points.
What is an IRR?
An Interest Rate Reduction (IRR), also known as a Loan Modification is a HUD financing option that allows the current Lender to submit a request to HUD on behalf of a borrower to reduce their current mortgage interest rate.
- A simple way to reduce your interest rate via a modification agreement.
- Maintain the existing maturity date.
- Nominal transaction fees.
- There are no 3rd party costs (Project Capital Needs Assessment (PCNA) will not be required if a PCNA was completed within the past 10 years).
- Any existing prepayment penalty would be included in the reduced mortgage interest rate.
- The typical processing timeline would be 30 to 45 days.
- Multifamily and Healthcare properties that currently have a HUD-insured loan being serviced by Centennial Mortgage.
- Mortgagor entity must be either a for-profit or non-profits
Please feel free to contact Terrance to discuss your IRR option and any other HUD loan programs.
Terrance D. Watkins
Vice President, Origination