Permanent non-recourse mortgage financing for the refinance of mortgages on multifamily projects already insured under the National Housing Act.
Allows owners to reduce debt service requirements and accomplish needed repairs.
Multifamily and healthcare properties that currently have FHA insured loans.
Single-asset, special purpose entity, either for profit or non-profit.
Fixed for term of loan, determined by market conditions at time of rate lock. Rate lock deposit is o.5% and refunded at closing.
Shorter of remaining term plus 12 years or original mortgage term.
Negotiable with best pricing for 10 years of call protection (can be a combination of lockout and/or penalty); loan is fully assumable subject to HUD approval.
Maximum loan amount will be the least of the original principal balance when first insured or parameters below; no equity take out is permitted under section 223(a)(7)
|Property type||Minimum Debt Service Coverage||Maximum Loan to Refinance Cost*||Cash Out|
Transfer of Replacement Reserve Escrow Account and annual payments to this account required. HUD will determine if the current monthly escrow is sufficient.
Up to $1,500 per unit plus required accessibility and life-safety repairs.
MORTGAGE INSURANCE PREMIUM
0.50% due to HUD at closing and 0.5% annually thereafter.
*0.25% for Energy Star certified properties through HUD’s Green MIP program
0.25% to 0.35% for affordable and subsidized prperties
Healthcare: 0.5% due to HUD at closing and 0.55% annually thereafter; escrowed monthly.
HUD APPLICATION FEE
0.15% of estimated loan amount due with submission of application.
Processing contingent upon completed transfer of physical assets (TPA), if applicable.
Current lender must obtain Insurance Termination Approval from HUD Headquarters
Note: All Replacement Reserve, Taxes & Insurance Escrows will be transferred
Nothing contained herein is intended to be, nor should it be construed as, a commitment to lend on these or any other terms.