FHA 221(d)(4)

KENDALL REALTY ADVISORS

National FHA Loans

FHA 221(d)(4) Market Rate and Affordable Multifamily Housing Finance

FHA 221(d)4 Loan Program

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


Chuck Kendall (773) 359-7074 kendallrealtyadv@gmail.com 

www.kendallrealtyadvisors.com