MULTIFAMILY

NEW CONSTRUCTION/SUBSTANTIAL REHABILITATION

• Financing under this program may be combined with governmental loans or grants

• FHA insurance combined with a Ginnie Mae security provides a “AAA” credit enhancement for bonds

Loan Size: No minimum or maximum loan

Property Types: Multifamily properties of 5 or more units; garden/mid-rise/high rise. Most geographic locations.

LTV/LTC: For Profit: Up to 90% of cost, including the “As Is” value of the land

Not-for-Profit: Up to 100% of costs including the “As-Is” value of the land

Loan Term: Up to 40 years plus the construction period

Amortization: Construction period: Interest-Only

DSC: For Profit: 1.11:1

Not-For-Profit: 1.05:1

Interest Rate: Interest rate locked prior to construction for the full loan term.

Prepayment: Negotiable

Assumability: Fully assumable with HUD and lender’s consent

Recourse: Non-recourse, except  as required by HUD

Fees and Costs: Third Party Reports: require various borrower-paid third party reports, a market study, an appraisal, a PCNA, a seismic report (where applicable), and a Phase I Environmental Survey, architectural,legal, and organizational costs.

HUD Fees: HUD Application Fee,  HUD Inspection Fee, and a HUD mortgage insurance premium

Lender Fees: The borrower will be responsible for lender legal fees and, for payment of negotiated origination and placement fees

Please note that some or all of these costs may be eligible for inclusion within the mortgage loan