FHA 223 (f) Apartment Loans - FHA 223 F Multifamily Finance

KENDALL REALTY ADVISORS
National apartment and healthcare loans
FHA 223(f) Apartment Loans Affordable and Market Rate Housing Finance

APARTMENT LOAN PROGRAMS

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FHA 223(f) apartment loans, 35 years up to 83.3% loan to purchase or 83.3% loan to value Refinance*, *75% Cash out Refinance rates fixed average 4% all in over the last few year. Non Recourse.

FHA 223(f) Apartment Refinance or Purchase

 

ELIGIBLE PROPERTIES: Market Rate Apartments Class A, B, C, or Mixed use or affordable housing properties.  Loans greater than $2,500,000 are cost effective for the borrower

LOAN TYPE TERM - AMORTIZATION: Permanent 35-year fully amortizing loan

MAXIMUM LOAN: The lessor of 83% of appraised value (75% Cash Out), 1.20 debt service coverage, statutory limits - Except for 100% affordable with 87% loan to value limit

REFINANCE: 1. The Greater of: (a) the cost to refinance; or (b) 83% of value; 2. Cash Out 75% of value

PURCHASE: 83% of the cost of acquisition.

INTEREST RATES: 3.25% to 4% over last 6 months currently 3.55% plus .45% MIP

PERSONAL RECOURSE: Non-recourse.

ASSUMABILITY: Assumable, subject to approval.

SUBORDINATE FINANCING: Soft seconds allowed, subject to HUD criteria.

PREPAYMENT: Negotiable. Typically 5 years of prepayment min.

REPAIRS: Repairs may not exceed the greatest of 15% of the value after repairs

ANNUAL MORTGAGE INSURANCE PREMIUM: 1.0% of the mortgage amount is payable at closing. Thereafter, the MIP is escrowed monthly based on a rate of .45% per year.

ESCROWS: Monthly escrows for property insurance, real estate taxes, reserves for replacement (and mortgage insurance premiums. An initial deposit to replacement reserve and 100% of repair costs are escrowed from mortgage proceeds.

COMMERCIAL SPACE: Commercial area shall not exceed 10% of the total net rentable area of the project and commercial income shall not exceed 15% of effective gross income.

ENVIRONMENTAL ISSUES: Special rules apply for properties which are located in Flood Hazard Zones as designated by FEMA. Lead-based paint and asbestos must be abated.

APPLICATION FEE: Appraisal, environmental assessment, property condition reports costs about $15,000. FHA charges a 0.3% exam fee at the time of application

FINANCING AND PLACEMENT FEES: Varies by deal typically 1% - 2%

CLOSING EXPENSES: Standard transaction costs, including legal fees, title insurance and survey.

 

 

 

FHA 223(f) APARTMENT LOAN

 

PRELIMINARY SUBMISSION PACKAGE:

 

1.      Property description

2.      Area and Neighborhood description

3.      location map

4.      Units breakdown with rents by unit type

5.      Current rent roll

6.      Vacancy and Concessions, bad debt other rent loss for last 12 months 

7.      Year-to-date operating statement.

8.      Operating history – prior 3 years, if available.

9.      Pro-Forma 12 month operating budget.

10.  Existing debt, purchase price, date purchased if applicable

11.  Owner resume

12.  Owner Financial Statement

13.  Interior and Exterior Photos

14.  If purchase, purchase agreement and time remaining on contract

 

 

 

Scott Kendall 847-903-7578

kendallrealty@gmail.com

Charles Kendall 773-259-7074

kendallrealtyadv@gmail.com

 

Kendall Realty Advisors LLC

312 Florence Avenue, Evanston, IL 60202

(847) 903-7578



FHA 221(d)(4) new construction,
$5,000,000 min. 40 years plus construction. 20% min equity.