Apartment Loans

Wednesday, January 21, 2009

FHA 223(f) Apartment Loans

FHA 223(f) Apartment Loans

Multifamily Rental Housing
Section 223(f)
Acquisition or Refinance

Insured mortgages may be used to finance acquisition or refinance of rental properties consisting of 5 or more units 3-years old or older.

Eligible Borrowers:
• Single Asset Entity

• Up to 35 Years

Loan Benefits:
• Non Recourse
• Fully assumable
• credit enhancement of Housing Bonds for AAA rating

• Fixed for the length of the mortgage

• Eligible for Multifamily Accelerated Processing (MAP).

Mortgage Loan Limitations:

The maximum insured mortgage will be the lessor of:
• DSC - 1:17
• 85% loan to value (80% if cash out)
• 100% existing debt plus loan costs, including repairs
• FHA’s per unit mortgage limits

The maximum insured mortgage will be the lesser of:
• DSC – 1:17
• 85% of the loan to value
• 85% of acquisition costs including loan costs and repairs.
• FHA’s per unit mortgage limits

Secondary financing:
• Permitted; repayment is subject to availability of surplus cash, special conditions apply.

Prepayment Terms:
• Typically 5-Year lockout with a declining penalty of 1% per year for years 6 through 10, then 0%.

Chuck Kendall (773) 259-7074 kendallrealtyadv@gmail.com
Scott Kendall (847) 903-7578 hhcfhafinance@gmail.com

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