Loan Type: HUD/FHA - 223(f) - fixed-rate, non-recourse, permanent loan
 Property Type:   Multifamily rental apartments
 Purpose:   Acquisition or refinance.  For-profit or nonprofit borrowers may utilize this program.  Refinance transactions may enable owner to extract a portion of equity in the property.  
 Eligibility: The property must contain at least five residential units with complete kitchens and baths, and it must have been completed or substantially rehabilitated more than three years from the date of application for mortgage insurance.  
 Amount: Unlimited, prefer $3 million or greater
 Loan-To-Value: Subsidized:  87% Loan-to-Value, 100% to refinance, 90% to acquire   
Affordable:  85% Loan-to-Value, 100% to refinance, 90% to acquire   
Market Rate:  83.3% Loan-to-Value, 100% to refinance, 90% to acquire    
 Debt Service Coverage:   Subsidized:   1.15x  
Affordable:   1.176x  
Market Rate:   1.20x   
 Interest Rate:   Fixed rate subject to market conditions at rate lock
 Term: Up to 35 years
 Amortization: Up to 35 years
 Liability:   Non-recourse loan
 Assumability:   Yes, with FHA approval
 Prepayment:   Typically, 2-year lockout with fixed declining thereafter
 Escrows:   Monthly escrows for property insurance, real estate taxes, reserves for replacement and mortgage insurance premiums.  
 Fees & Expenses:   Borrower is responsible for due diligence, transaction and legal fees.  At time of closing, these fees and all other closing costs may be included in the loan amount.  
 Timing:   This transaction typically can be completed in five months.  Actual processing times vary depending on the project.  
 Post-closing Reporting:   Annual audited financial statements

finance

Permanent - HUD/FHA - Multifamily