All Properties
Refinance
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Rockport Mortgage Corporation is
an FHA-approved Mortgagee and actively
provides financing utilizing the
FHA insurance programs nationwide.
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HUD 223(a)(7)
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All Properties
with FHA-Insured Mortgages
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 printer
friendly version
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Purpose
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Provides mortgage
insurance in connection with the
refinance of projects currently insured
by FHA. Available for profit motivated
or non-profit borrowers and Multifamily
or healthcare projects.
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Eligible Borrowers
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Profit motivated,
non-profit motivated and public owners
are eligible.
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Maximum Term
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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.
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Maximum Loan
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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 required repairs, improvements,
outstanding debt incurred in connection with 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).
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Personal Liability
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None
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Prepayment
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Typically closed for
five years then open to prepayment
at 105 in year six,
declining 1% per year.
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FHA Application
Fees
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0.3% of the loan amount.
At closing, HUD will approve reimbursement
of up to one-half of the application
fee.
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Mortgage Insurance
Premium
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0.5% of the outstanding
loan amount.
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Finance Fee
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1% - 2% typically
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Funding
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Qualifies for government
insured mortgage-backed securities
or direct
Placement or may be used to credit-enhance tax-exempt
bonds.
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Interest Rate
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Approximately 150-175
basis points over 10-Year Treasury,
but subject to market conditions.
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Territory
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Nationwide
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Additional
Parameters
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The Program is available
for fully insured mortgages or
coinsured mortgages that have
been converted to full insurance.
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Funds to cover 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.
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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.
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Loans insured under
223(a)(7) assume program characteristics
of the underlying mortgage insurance
program.
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Processing Section
223(a)(7) applications usually
takes 30-45 days.
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