35 years, not to exceed 75% of remaining economic life.
All properties must demonstrate average physical occupancy of at least 85% for a period of 6 months prior to submittal of the application and maintain through final endorsement (i.e. stable occupancy). Maximum underwritten physical occupancy of 93% for market rate or affordable(1) properties. Maximum underwritten physical occupancy of 95% for rental assisted(2) properties, or properties where all units have rents at least 20% below comparable market rents.
Qualifies for Ginnie Mae guaranteed mortgage-backed securities, direct placement or may be used to credit enhance tax-exempt bonds.
Subject to market conditions.
MORTGAGE INSURANCE PREMIUM:
The annual MIP has historically been 0.45% of the outstanding loan amount. The first year MIP is set at 1% of the loan amount.
Typically closed for 2 years then open to prepayment at 108% in year 3, declining 1% per year. Other variations are possible based on market conditions and borrower preferences.
Section 223(f) processing usually takes about 4 to 5 months (subject to deal specifics).
FHA Application Fees:
0.30% of the loan amount (non-refundable).
None. The FHA insured loan is non-recourse; however, identified principal(s) will be required to sign “Bad Boy” carve outs at closing.
Permitted in the form of a surplus cash note, combined loan-to-value cannot exceed 92.5% unless the secondary financing is from a governmental source.
Yes, subject to HUD and lender approval (0.05% of the original loan amount).