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Apartment Loan
Quick Links
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HUD FHA Insured
Mortgages |
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FHA
221(d)(4) - Multifamily New Construction or
Substantial Rehabilitation |
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FHA
223(f) - Multifamily Purchase or Refinance |
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FHA
223(a)(7) - Refinancing of an Existing FHA
Multifamily or Healthcare Loan |
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FHA 232
- Healthcare New Construction and
Substantial Rehabilitation |
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FHA 232
Healthcare Acquisition and Refinance |
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FHA
241(a) - Supplemental Financing |
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FHA 242
- Hospital Financing |
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HUD FHA
207 - Manufactured Housing |
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FHA
Insured Multifamily Accelerated Processing -
MAP Lender Overview |
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Information needed for HUD FHA Preliminary
Loan Analysis |
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HUD FHA
LEAN Processing for Healthcare Properties -
Section 232 |
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HUD FHA
223(f) Apartment
Loans - Refinance or
Purchase
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CommercialBanc
provides HUD FHA
insured apartment mortgages
under FHA Section
223(f) for the
acquisition or
refinancing of
apartment and
multifamily housing
properties. |
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HUD FHA apartment
loans are a great
financing option for
borrowers looking
for maximum leverage
and longer fixed
rates and terms. FHA
insured mortgages
are non-recourse
with no market -
economic or
population -
restrictions. |
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The
HUD FHA 223(f) is a
market rate
apartment program.
There are no tenant
income restrictions
or requirements,
unless otherwise
required by a
project based HAP
contract or
individual tenant
based voucher
program. |
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CommercialBanc is a
correspondent of the
Multifamily
Accelerated
Processing (MAP)
program. MAP
Lenders are able to
expedite the
underwriting,
processing and
closing of your HUD
FHA insured
apartment loan. |
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Why Choose a
223(f) Apartment
Loan - Advantages |
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80% LTV for
refinances
85% LTV for
purchases
92.5% LTC for
purchases
35 year amortization
35 year fixed rates
Minimum DSCR of 1.17
Up to 7.5% seller
seconds
Secondary financing
permitted
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Non-recourse
FHA apartment
mortgages are
assumable
No minimum
population
requirements
No minimum net worth
requirements
Lower credit scores
acceptable
No yield maint. or
defeasance prepay
Funds for repairs
and improvements
Supplemental
financing available
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Disadvantages of the
223(f) Program |
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Longer processing
times - 90 to 120
days
Higher fees - HUD
and FHA fees add to
the overall cost of
the loan
Mortgage Insurance
Premiums (MIP) -
Initial and annual
premiums
Annual audited
operating statements
required
Replacement reserve
escrows required
HUD property
inspections required
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Is the
223(f) Multifamily
Program the Right
Choice for Me
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At CommercialBanc,
we offer apartment
loans from our own
portfolio - Banc
Series, HUD/FHA,
Fannie Mae, Freddie
Mac and partner
banks. Our goal is
to provide
the product that
best meets your
needs. For many
borrowers, a HUD FHA
insured apartment mortgage
is the perfect
choice. |
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Why Consider a HUD
FHA apartment loan: |
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Purchases up to 85%
loan-to-value and
92.5% loan-to-cost
35 year fixed rates
/ 35 year
amortization / No
balloon payment
Avoid interest rate
risk and costs
associated with
refinancing
Property located in
a declining value
or distressed market and require
up to 85%
loan-to-value
financing
Property located in
a smaller
(population) market
Require or prefer a
non-recourse loan
Flexible prepay - No
yield maintenance or
defeasance prepay
risk
Loan is assumable
should you sell
Available for profit
and not-for-profit
borrowers
Detached structures
and row houses
eligible
Require funds for
repairs or
improvements
HUD FHA supplemental
loan (2nd mortgage)
available to fund
property repairs or
improvements
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HUD FHA
223(f) Program Costs
and Fees |
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Third Party Reports:
appraisal,
engineering report,
environmental
analysis and flood
certification
FHA Inspection Fee:
1% of repair costs
or $30 per unit if
repairs are less
than $3,000 unit
FHA Exam Fee: $3 per
$1,000 of the loan
balance
Financing Fee: 1%-3%
depending on loan
size and loan
complexity
Permanent Placement
Fee: 1%-2%
First Year Mortgage
Insurance Premium:
1% of loan amount
Monthly Mortgage
Insurance Premium:
.45%
Borrower's Legal:
Estimated at $10,000
Title & Recording
Fees: TBD
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HUD FHA
223(f) Escrow and
Reserves |
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Tax and Insurance
Impounds: Required
Replacement
Reserves: Required -
Monthly deposit
required and amount
depends on property
condition
Initial Deposit to
Reserve Fund:
Required - One time
deposit may be
required depending
on property
condition
Critical and
Non-Critical Repair
Escrow: May be
required for
properties with
life, safety, health
or code related
repair and/or
maintenance concerns
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Must contain five or
more residential
units and consist of
complete living
facilities including
provisions for
eating, cooking and
sanitation
Properties with
fewer than five
residential units
will be considered
if the aggregate of
units exceeds five
and all properties
are contiguous
Commercial area is
permissible, but
cannot exceed 20% of
the net rental area,
or 25% of the gross
revenues
Both market rate and
affordability
properties are
eligible
Student housing
properties that
offer rents per
room, not per unit,
are ineligibe
30 day minimum lease
term required
Three years must
have elapsed since
construction or
substantial
rehabilitation. For
properties with
fewer than three
years stabilization,
a waiver may be
granted to refinance
debt only, no owner
equity take out
allowed
The loan may include
repair costs not to
exceed 15% of its
value after repairs
or no more than
$6,500 per unit
(except in high cost
areas) - whichever
is greatest. Repairs
may not include
replacing more than
one major building
system such as
plumbing or electric
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