| FHA 223(F) Apartment Loans Nationally KENDALL REALTY ADVISORS LLC - Chicago, IL Apartment Refinance and Purchase |
FHA 223(f) Apartment Refinance or Purchase
ELIGIBLE PROPERTIES: Market Rate Apartments Class A, B, C, or Mixed use or
Affordable Housing Properties. Loans greater than $2,500,000 are cost effective
for the borrower
LOAN TYPE TERM - AMORTIZATION: Permanent fixed rate, 35-year fully
amortizing loan
MAXIMUM LOAN: The lessor of 83% of appraised value (75% Cash Out), 1.20 debt
service coverage, statutory limits - Except for 100% affordable with 87% loan to
value limit
REFINANCE: 1. The Greater of: (a) the cost to refinance; or (b) 83% of value; or
2. Cash Out 75% of value
PURCHASE: 83% of the cost of acquisition
INTEREST RATES: 3.25% to 3.75% currently 3.55% plus 0.45% MIP
NO PERSONAL RECOURSE: Non-recourse other than standard carve outs
ASSUMABILITY: Assumable, subject to approval. SUBORDINATE FINANCING:
Some soft seconds allowable, subject to HUD criteria
PREPAYMENT: Negotiable. Typically 5 to 9 years of prepayment penalties
REPAIRS: Repairs may not exceed 15% of the value after repairs
ANNUAL MORTGAGE INSURANCE PREMIUM: 1.0% of the mortgage amount is
payable at closing. Thereafter, the MIP is escrowed monthly based on a rate of .45%
per year
ESCROWS: Monthly escrows for property insurance, real estate taxes, reserves
for replacement (and mortgage insurance premiums. An initial deposit to
replacement reserve and 100% of repair costs are escrowed from mortgage
proceeds
COMMERCIAL SPACE: Commercial area shall not exceed 10% of the total net
rentable area of the project and commercial income shall not exceed 15% of
effective gross income
ENVIRONMENTAL ISSUES: rules apply for properties which are located in Flood
Hazard Zones as designated by FEMA. Lead-based paint and asbestos must be
abated
APPLICATION FEE: Appraisal, environmental assessment, property condition
reports costs about $15,000. FHA charges a 0.3% exam fee at the time of application
FINANCING AND PLACEMENT FEES: Varies by deal 1% - 2%
CLOSING EXPENSES: Standard transaction costs, including legal fees, title
insurance and survey
PRELIMINARY SUBMISSION PACKAGE:
1. Property description
2. Area and Neighborhood description
3. Location map
4. Units breakdown with rents by unit type
5. Current rent roll
6. Vacancy and Concessions, bad debt other rent loss for last 12 months
7. Year-to-date operating statement.
8. Operating history – prior 3 years, if available.
9. Pro-Forma 12 month operating budget.
10. Existing debt, purchase price, date purchased if applicable
11. Owner resume
12. Owner Financial Statement
13. Interior and Exterior Photos
14. If purchase, purchase agreement and time remaining on contract
Charles Kendall 773-259-7074 kendallrealtyadv@gmail.com
* Revised Three year rule waiver FHA 223(f) properties with a certificate of
occupancy can apply for waiver to three year rule if the current lender or
conventional lenders turn down refinancing until Feb. 2012.
ELIGIBLE PROPERTIES: Market Rate Apartments Class A, B, C, or Mixed use or
Affordable Housing Properties. Loans greater than $2,500,000 are cost effective
for the borrower
LOAN TYPE TERM - AMORTIZATION: Permanent fixed rate, 35-year fully
amortizing loan
MAXIMUM LOAN: The lessor of 83% of appraised value (75% Cash Out), 1.20 debt
service coverage, statutory limits - Except for 100% affordable with 87% loan to
value limit
REFINANCE: 1. The Greater of: (a) the cost to refinance; or (b) 83% of value; or
2. Cash Out 75% of value
PURCHASE: 83% of the cost of acquisition
INTEREST RATES: 3.25% to 3.75% currently 3.55% plus 0.45% MIP
NO PERSONAL RECOURSE: Non-recourse other than standard carve outs
ASSUMABILITY: Assumable, subject to approval. SUBORDINATE FINANCING:
Some soft seconds allowable, subject to HUD criteria
PREPAYMENT: Negotiable. Typically 5 to 9 years of prepayment penalties
REPAIRS: Repairs may not exceed 15% of the value after repairs
ANNUAL MORTGAGE INSURANCE PREMIUM: 1.0% of the mortgage amount is
payable at closing. Thereafter, the MIP is escrowed monthly based on a rate of .45%
per year
ESCROWS: Monthly escrows for property insurance, real estate taxes, reserves
for replacement (and mortgage insurance premiums. An initial deposit to
replacement reserve and 100% of repair costs are escrowed from mortgage
proceeds
COMMERCIAL SPACE: Commercial area shall not exceed 10% of the total net
rentable area of the project and commercial income shall not exceed 15% of
effective gross income
ENVIRONMENTAL ISSUES: rules apply for properties which are located in Flood
Hazard Zones as designated by FEMA. Lead-based paint and asbestos must be
abated
APPLICATION FEE: Appraisal, environmental assessment, property condition
reports costs about $15,000. FHA charges a 0.3% exam fee at the time of application
FINANCING AND PLACEMENT FEES: Varies by deal 1% - 2%
CLOSING EXPENSES: Standard transaction costs, including legal fees, title
insurance and survey
PRELIMINARY SUBMISSION PACKAGE:
1. Property description
2. Area and Neighborhood description
3. Location map
4. Units breakdown with rents by unit type
5. Current rent roll
6. Vacancy and Concessions, bad debt other rent loss for last 12 months
7. Year-to-date operating statement.
8. Operating history – prior 3 years, if available.
9. Pro-Forma 12 month operating budget.
10. Existing debt, purchase price, date purchased if applicable
11. Owner resume
12. Owner Financial Statement
13. Interior and Exterior Photos
14. If purchase, purchase agreement and time remaining on contract
Charles Kendall 773-259-7074 kendallrealtyadv@gmail.com
* Revised Three year rule waiver FHA 223(f) properties with a certificate of
occupancy can apply for waiver to three year rule if the current lender or
conventional lenders turn down refinancing until Feb. 2012.
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| Scott Kendall 847-903-7578 kendallrealty@gmail.com Charles Kendall 773-259-707 kendallrealtyadv@gmail.com |
| APARTMENT Refinance or Purchase LOWEST RATES OF ALL PROGRAMS 4% all in - 35 year term - fixed rate - non recourse Click here: Apartment Loan Rates Chart Lowest Rates in 15 years |