New Construction or Substantial
Rehabilitation
Apartment Properties
HUD Section 221(d)(4)
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here to view PDF Printable Term Sheet
|
| Borrower: |
Profit motivated |
| Maximum Loan: |
Amount
equal to the lesser of: (a) HUD statutory mortgage limits,
adjusted by location; (b) 90% of HUD estimated replacement
cost; or (c) the amount which could be serviced by 90% or
the property's NOI |
| Interest
Rate: |
Fixed rate determined by market rates at time of rate lock |
| Prepayment Provisions: |
Negotiable |
| Term: |
40 years |
| Amortization: |
Fully amortizing loan |
| Recourse: |
No personal or corporate liability |
| Rate Lock: |
30 to 45 days prior to closing |
| Subordinate Debt: |
None for new construction or substantial rehabilitation. Additions and alternations are funded with Subordinate Debt insured under section 241 of the National Housing Act. |
| Assumability: |
Subject to HUD and BHMC approval. |
| Escrows: |
Monthly escrows are required for taxes, insurance, mortgage insurance premium and replacement reserves. |
| FEES (included in mortgage): |
| HUD Application Fee: |
0.3% of mortgage amount |
| Third Party Reports: |
Market Study, Appraisal, Architectural/Engineering Report, Cost Analysis, Environmental Assessment. |
| Inspection Fee: |
0.5% of mortgage amount |
| Financing Fee: |
Negotiable |
| Closing Costs: |
Standard: legal, title, survey |
| Mortgage Insurance Premium: |
1% of the actual outstanding daily balance during construction, thereafter,.5% annually based on the declining mortgage balance. |
| Estimated Processing Time: |
Generally 90 days to the issuance of the Firm Commitment; three to four weeks to close the loan. |
| Territory: |
Nationwide |
