Loan Type: HUD/FHA - 221(d)(4) - fixed-rate, non-recourse, construction and permanent loan
 Property Type:   Multifamily rental apartments
 Purpose:   New construction or substantial rehabilitation. For-profit or nonprofit borrowers may utilize this program.  
 Eligibility (Sub. Rehab):   Certain cost thresholds must be met for rehabilitation projects. Davis-Bacon prevailing wage standards apply.  
 Amount: Unlimited, prefer $5 million or greater
 Loan-To-Value: Subsidized:   90% loan-to-cost  
Affordable:   87% loan-to-cost  
Market Rate:   83.3% loan-to-cost  
 Debt Service Coverage:   Subsidized:   1.11x  
Affordable:   1.15x  
Market Rate:   1.20x  
 Interest Rate:   Fixed rate subject to market conditions at rate lock
 Term: Construction period plus up to 40 years upon completion
 Amortization: Up to 40 years upon completion (interest only during construction)
 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 eight to 10 months.  Actual processing times vary depending on the project.  
 Post-closing Reporting:   Annual audited financial statements

Construction - HUD/FHA - Multifamily

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