Platform Overview:
This program permits the modification of an existing loan only for the purpose of
reducing the interest rate. The existing prepayment penalty must be paid in full
qualified properties
Properties with existing FHA insured loans are eligible. Must be out of lock-out before the request is submitted
loan amount
No increase in loan proceeds available; however, a minimum DSC of 1.11x is required based on T-12 operating financials and the new interest rate
maximum term
No term extension available
fees and expenses
Minimal fees and expenses. No financing fees. Prepayment penalties, lender legal fees and title/recording can all be paid through premium generated by the interest rate. Borrower legal, if any, must be paid out of pocket at closing
timing
30 - 45 days
No underwriting required
HUD asset management approval required
other FHA requirements
Replacement reserve escrow remains in place
No third party reports required
MIP remains at existing level