National FHA Loans FHA 221(d)(4) Market Rate and Affordable Multifamily Housing Finance FHA 221(d)(4) Apartment Construction loan New Construction or Rehabilitation Section 221(d)(4) Summary: Insured mortgages may be used to finance the construction or rehabilitation of detached, semidetached, row, walkup, or elevator-type rental or cooperative housing containing 5 or more units Eligible Borrowers:· Single Asset Entity Terms:· Up to 40 Years plus construction or substantial rehabilitation period Loan Benefits:· Non-recourse, including the construction period. - Fully assumable -Construction to Permanent – All in One Loan. · Credit enhancement of Housing Bonds for a AAA rating. Eligible Properties:· 5 or more units Rates:· Fixed for the length of the mortgage Processing:· Eligible for Multifamily Accelerated Processing (MAP)· Davis Bacon Wage Rates Required Mortgage Loan Limitations: Construction The maximum insured mortgage will be the lesser of: · DSC - 1:20 · 83% of the estimated replacement costs · Per unit mortgage limitation for the geographic area. Substantial Rehabilitation The maximum insured mortgage will be the lesser of: · DSC – 1:20 ·83% of the eligible rehabilitation costs, including transaction costs and the “as is” value of the property. 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%. Scott Kendall (847) 903-7578 scott@kendallrealtyadvisors.com
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