Affordable Housing
New Construction |
| Rockport Mortgage Corporation is an FHA-approved Mortgagee and actively provides financing utilizing the FHA insurance programs nationwide.
|
| HUD 221(d)(3)&(4) | Non-Profit | For Profit |
|  printer friendly version
| printer friendly version |
| Purpose | Provides mortgage insurance for proposed apartment projects and rehabilitations including elderly projects. |
| Eligible Borrowers | Profit and Non-Profit motivated single purpose entities (note: a non-profit can be the General partner of a profit motivated single purpose ownership entity). |
| Maximum Term | 40 years plus a construction period. | 40 years plus a construction period. |
| Maximum Loan | The lesser of:
1. 100% of replacement cost, or
2. Amount of debt that can be serviced by 95% of net income. | The lesser of:
1. 90% of replacement cost, or
2. Amount of debt that can be serviced by 90% of net income.
|
| Personal Liability | None | None |
| Prepayment | Typically closed for five years then open to prepayment at 5% prepayment fee in year six, declining 1% per year. | 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 the loan amount. | 0.3% of the loan amount. |
| Mortgage Insurance
Premium | 0.50% of the outstanding loan amount annually. | 0.50% of the outstanding loan amount annually. |
| Insured
Construction Loan | Included | Included |
| Builder/Developer's Profit | Builder and sponsor's profit and risk allowance equal to 10% of all
costs other than land. | Builder and sponsor's profit and risk allowance equal to 10% of all
costs other than land.
|
| FHA Inspection Fees | 0.5% of loan amount
(new construction)
0.5% of costs associated with construction (sub rehab) | 0.5% of loan amount
(new construction)
0.5% of costs associated with construction (sub rehab) |
| Finance Fee | Negotiable; 1.5% - 2.5% typical | Negotiable; 1.5% - 2.5% typical |
| Secondary Financing | Surplus cash notes are permitted. | Surplus cash notes are permitted |
| Timing | Per "MAP" (Multifamily Accelerated Processing) Guidelines an application can be processed in approximately 90-120 days from submission of a complete package. | Per "MAP" (Multifamily Accelerated Processing) Guidelines 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. | 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. | Approximately 175-200 basis points over 10-Year Treasury, but subject to market conditions. |
| Territory | Nationwide | Nationwide |
| | | |
