Apartments
Expansion and Renovation |
| Rockport Mortgage Corporation is an FHA-approved Mortgagee and actively provides financing utilizing the FHA insurance programs nationwide.
|
| HUD 241 | Existing FHA Insured Loans Only |
|  printer friendly version
|
| Purpose | Provides mortgage insurance for a supplemental loan for the purpose of improvements or additions to a Multifamily project, a nursing home, an intermediate care facility or a group practice facility covered by a FHA insured loan, without refinancing the existing mortgage. |
| Eligible Borrowers | Profit motivated, non-profit motivated and public owners are eligible. |
| Maximum Term | Amortization period is not to exceed the remaining term of the first mortgage plus 12 years. |
| Maximum Loan | 90% of cost of improvement or addition and in term to a period not longer than the remaining term of the mortgage. Statutory dollar limits and statutory unit limits are applicable to the total of (1) the outstanding mortgage and (2) the supplemental loan. |
| Personal Liability | None |
| Prepayment | Typically closed for five years then open to prepayment at 5% prepayment fee in year six, declining 1% per year. |
| FHA Application Fees | 0.3% of requested loan amount. |
| Mortgage Insurance
Premium | .50% of the outstanding loan amount annually. |
| FHA Inspection Fees | .50% of the loan amount. |
| Finance Fee | Negotiable; 1% - 3.5% |
| Timing | An application can be processed in approximately 90-120 days from submission of a complete package. |
| Funding | Qualifies for government insured mortgage-backed securities or direct Placement or may be used to credit-enhance tax-exempt bonds. |
| Interest Rate | Approximately 175-200 basis points over 10-Year Treasury, but subject to market conditions. |
| Territory | Nationwide |
 | |
