Company: BHM
Filing Date: 2025-04-07
Form Type: POS AM
Source: 0001104659-25-032524
Chunk: 64

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-07
Form: POS AM
Chunk 64
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 the properties we do purchase may be lower. If we place mortgage debt on properties, we run the risk of being unable to refinance
the properties when the debt becomes due or of being unable to refinance on favorable terms. If interest rates are higher when we refinance
the properties, our income could be reduced. As such, we may find it difficult, costly or impossible to refinance indebtedness that is
maturing. If any of these events occur, our interest cost would increase as a result, which would reduce our cash flow. This, in turn,
could reduce cash available for distribution to our stockholders and may hinder our ability to raise capital by issuing more stock or
borrowing more money. If we are unable to refinance maturing indebtedness with respect to a particular property and are unable to pay
the same, then the lender may foreclose on such property.

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Volatility in the commercial mortgage-backed securities market could impact the pricing of secured debt.

Volatility in the commercial
mortgage-backed securities market could result in the following adverse effects on our incurrence of secured debt, which could have a
materially negative impact on our financial condition, results of operations, cash flow and cash available for distribution:

| · | higher loan spreads; |

| · | tighter loan covenants; |

| · | reduced loan-to-value ratios and resulting borrower proceeds; and |

| · | higher amortization and reserve requirements. |

Some of our mortgage loans may have “due-on-sale” provisions, which may impact the manner in which we acquire, sell and/or finance our properties.

We may obtain financing with
“due-on-sale” and/or “due-on-encumbrance” clauses when financing our properties. Due-on-sale clauses in mortgages
allow a mortgage lender to demand full repayment of the mortgage loan if the borrower sells the mortgaged property. Similarly, due-on-encumbrance
clauses allow a mortgage lender to demand full repayment if the borrower uses the real estate securing the mortgage loan as security for
another loan. In such event, we may be required to sell our properties on an all-cash basis, which may make it more difficult to sell
the property or reduce the selling price.

Lenders may be able to recover against our other properties under our mortgage loans.

In financing our property
acquisitions, we will seek to obtain secured nonrecourse loans. However, only recourse financing may be available, in which event