"ACQUISITION AND REFINANCING" OF
MULTIFAMILY PROPERTIES
FHA Section 223(f) Mortgage Insurance Program
(401) 525-6544
Eligible Multifamily Projects
- Market rate, moderate-income and subsidized properties
- Existing projects, at least three years old, with no more than minimal required levels of repair and with no substantial rehabilitation within the past three years.
- No rent control
- Student housing is not excluded, but multiple rents from one unit will not be underwritten.
- Limitation on commercial space: no more than 20% of the net rentable area and 20% of effective gross income
Loan Parameters
- The maximum loan amount is the least of:
- 85% of appraised value
- Loan amount that would achieve a debt service coverage ratio of 1:18 to 1.0
- Refinancing: 100% of outstanding debt plus transaction costs and proposed repairs. (If an equity take out is being requested, then the loan amount may be 80% of the project's appraised value under this loan criterion if that amount is greater than the cost of the refinance.)
- Acquisition: 85% of the acquisition price plus transaction costs and proposed repairs
Interest Rate The interest rate is fixed for the term of the loan. Currently 4.75% (9-10-09)
Term and Amortization Maximum term of 35 years; loan will fully amortize over term.
Recourse Non-recourse
Assumable Loan is assumable, subject to HUD approval and payment of an assumption fee and related transaction expenses.
TAKE ADVANTAGE OF OUR FREE PROJECT ANALYSIS TODAY
Winthrop Real Estate Solutions, LLC
1287 Post Road, Warwick, RI 02888
Howard L. Weldon
(Direct) 401-525-6544
(Fax) 888-679-0773
hweldon301@msn.com
Ewa S. Slusarek William C. Bryson
(Direct) 401-921-6268 (Direct) 401-487-2280
(Fax) 401-463-0164 (Fax) 888-679-0773
ewaslusarek@aol.com wbryson2280@gmail.com
