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Purpose Provides mortgage insurance in connection with the refinance of projects currently insured by FHA. Available for profit motivated or non-profit borrowers and multi-family or healthcare projects.
 
Eligible Borrowers Profit motivated, non-profit motivated and public owners are eligible.
 
Maximum Term The term of the new mortgage may not exceed the remaining term of the existing mortgage, except in special cases where due to the project feasibility, FHA may extend the new term up to 12 years beyond the term of the original mortgage.
 
Maximum Loan the lesser of:
  1. The original principal amount of the existing insured mortgage;
  2. The unpaid principal balance of the existing insured mortgage plus the cost of capital improvements (as approved by the HUD field office), prepayment penalties, and loan closing costs;
  3. The amount that can be supported by 90% of net operating income (95% if owner is non-profit).
 
Personal Liability None
 
Prepayment Negotiable at the time of the sale of the GNMA security
 
FHA Application Fees 0.3% of the loan amount. After endorsement of the new mortgage note, HUD will approve a request for up to one-half, or 0.15%, of the application fee.
 
Mortgage Insurance Premiums .57% of the outstanding loan amount.
 
Financing Fee Negotiable
 
Interest Rate Subject to market conditions.
 
Territory Nationwide
 
Additional Program Parameters:
  1. Funds to cover minor repairs and costs of the transaction can be included in the mortgage loan. Outstanding debt incurred in connection with capital improvements already made to the property may also be included in the mortgage loan, subject to FHA approval.
  2. The term of the new mortgage may not exceed the remaining term of the existing mortgage though FHA may extend the new term up to 12 years beyond the term of the original mortgage if it is required for project feasibility.
  3. Loans insured under HUD Section 223(a)(7) assume program characteristics of the underlying mortgage insurance program.
HUD Healthcare Facilities
Property
Loan Amount
St. Thomas More
 (Hyattsville, MD)
$37,123,600
Suffield by the River
 (Suffield, CT)
$8,505,300
Bala Nursing & Retirement Center
 (Philadelphia, PA)
$12,626,400
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