FHA-223F MULTIFAMILY - ACQUISTION / REFINANCE

fha section 223(F)Less

fha section 223(F)

multifamily acquisition or refinance loanLess
multifamily acquisition or refinance loan

Platform Overview:

Platform Overview:

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This loan provides non-recourse, assumable financing for the purchase or refinance of

existing multifamily, affordable or age-restricted properties

This loan provides non-recourse, assumable financing for the purchase or refinance of

existing multifamily, affordable or age-restricted properties

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qualified properties

qualified properties

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  • Multifamily properties which are at least 3 years old since final certificate of occupancy; projects must have an average physical occupancy rate of at least 85%

  • Multifamily properties which are at least 3 years old since final certificate of occupancy; projects must have an average physical occupancy rate of at least 85%

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Maximum Loan

Maximum Loan

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For refinancing, the maximum supportable loan is limited by the lesser of:

For refinancing, the maximum supportable loan is limited by the lesser of:

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  • (a) 85% LTV for market rate, 87% LTV for affordable, and 90% LTV for 90% or greater rental assistance;

  • (b) DSCR of 1.176x for market rate, 1.15x for affordable and 1.11x for 90% or greater  rental assistance; 

  • (c) Greater of 100% of eligible costs or, if cash out, 80% of market value. Eligible costs  include existing indebtedness, required repairs, any initial deposit to the replacement reserve, third party reports and other closing costs

  • (a) 85% LTV for market rate, 87% LTV for affordable, and 90% LTV for 90% or greater rental assistance;

  • (b) DSCR of 1.176x for market rate, 1.15x for affordable and 1.11x for 90% or greater  rental assistance; 

  • (c) Greater of 100% of eligible costs or, if cash out, 80% of market value. Eligible costs  include existing indebtedness, required repairs, any initial deposit to the replacement reserve, third party reports and other closing costs

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For a purchase transaction, the loan amount is limited by the lesser of:

For a purchase transaction, the loan amount is limited by the lesser of:

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  • (a) 85% LTV of value for market rate, 87% LTV for affordable, and 90% LTV for 90% or  greater rental assistance; 

  • (b) DSCR of 1.176x for market rate, 1.15x for affordable and 1.11x for 90% or greater  rental assistance; 

  • (c) 85% of eligible transaction costs for market rate, 87% for affordable, and 90% for 90% or greater rental assistance. Eligible costs include purchase price, required repairs, any  initial deposit to the replacement reserve, third party reports and other closing costs

  • (a) 85% LTV of value for market rate, 87% LTV for affordable, and 90% LTV for 90% or  greater rental assistance; 

  • (b) DSCR of 1.176x for market rate, 1.15x for affordable and 1.11x for 90% or greater  rental assistance; 

  • (c) 85% of eligible transaction costs for market rate, 87% for affordable, and 90% for 90% or greater rental assistance. Eligible costs include purchase price, required repairs, any  initial deposit to the replacement reserve, third party reports and other closing costs

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maximum term

maximum term

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  • Lesser of 35 years or 75% of the remaining economic life, but no less than 10 years

  • Lesser of 35 years or 75% of the remaining economic life, but no less than 10 years

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Personal Liability

Personal Liability

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  • FHA loan is non-recourse

  • FHA loan is non-recourse

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Assumability

Assumability

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  • Yes, subject to FHA approval

  • Yes, subject to FHA approval

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Commercial Limitations

Commercial Limitations

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  • 25% of total net rentable area; 20% of effective gross income

  • 25% of total net rentable area; 20% of effective gross income

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Repairs / Replacements

Repairs / Replacements

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  • Repairs cannot exceed $15,000 per unit multiplied by the High Cost Factor for the area.

  • Repairs/replacements are limited to a maximum of one major building component  replacement.

  • Repairs cannot exceed $15,000 per unit multiplied by the High Cost Factor for the area.

  • Repairs/replacements are limited to a maximum of one major building component  replacement.

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fees and expenses

fees and expenses

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  • Nominal processing fee due to Love Funding at engagement. The client must pay for all third party reports, which include a Phase I environmental site assessment, full appraisal, PCNA (Property Capital Needs Assessment), evaluation of utility consumption, and conformance to energy conservation measures. Funds must be remitted to Love Funding, and these contractors are engaged and paid by Love Funding directly. Financing and permanent placement fees not to exceed 3.5% are based on final loan amount, earned upon commitment and payable from mortgage proceeds at closing

  • Nominal processing fee due to Love Funding at engagement. The client must pay for all third party reports, which include a Phase I environmental site assessment, full appraisal, PCNA (Property Capital Needs Assessment), evaluation of utility consumption, and conformance to energy conservation measures. Funds must be remitted to Love Funding, and these contractors are engaged and paid by Love Funding directly. Financing and permanent placement fees not to exceed 3.5% are based on final loan amount, earned upon commitment and payable from mortgage proceeds at closing

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mortgage insurance premium

mortgage insurance premium

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  • Annual Mortgage Insurance Premium (MIP) is 0.25% to 1.00% at closing (one year prepaid)  and 0.25% to 0.60% annually thereafter (based on outstanding principal balance)

  • Annual Mortgage Insurance Premium (MIP) is 0.25% to 1.00% at closing (one year prepaid)  and 0.25% to 0.60% annually thereafter (based on outstanding principal balance)

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other FHA requirements

other FHA requirements

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  • HUD application fee is 0.3% of mortgage amount due at the time of submission of the Firm Application

  • Large loan sizes are subject to more conservative underwriting

  • Age-restricted properties can be financed under this program, so long as the head of household is 62 or older, and occupancy is not restricted to any remaining occupants

  • HUD application fee is 0.3% of mortgage amount due at the time of submission of the Firm Application

  • Large loan sizes are subject to more conservative underwriting

  • Age-restricted properties can be financed under this program, so long as the head of household is 62 or older, and occupancy is not restricted to any remaining occupants

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EMAIL, GIVE US A CALL OR SEND US A FAX

Toll Free: 888-640-3444

Toll Free: 888-640-3444

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E-fax: 866-257-9609

E-fax: 866-257-9609

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