FHA 221(d)(4)


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